Charles Weeks, head of new business development at Protego, said that the resale was a good sign for the property derivatives market. "It illustrates the ease, speed and price transparency by which PIC trades can be executed in the secondary market," he said.
Since its inception, questions have surrounded the potential for liquidity in the property derivatives market. A Risk report in August this year found enthusiasm high but limited by fears of an illiquid market.
But some parties, including Weeks, believe subsector trades could be a possible solution, with one banker saying that more trades "would completely change the dynamics of the market".