Intercontinental Exchange Inc. is making it easier for investors looking to hedge default risks to bypass the Wall Street banks that have long been the gatekeepers in the $12 trillion credit derivatives market.
The Atlanta-based exchange owner last week debuted a new way to buy and sell contracts tied to the borrowings of individual companies, mimicking how stocks and futures are traded, according to people with knowledge of the matter. ICE is able to cut out the dealers that created the swaps market by allowing investment firms to transact with each other on the platform with a clearinghouse sitting in the middle of every trade, the people said, asking not to be identified as they are not authorized to speak publicly.
The full article is avialable at http://www.bloomberg.com/news/articles/2016-07-19/ice-said-to-let-investors-bypass-banks-in-credit-swaps-trading
