The products will pay out on each credit event in the basket, and will continue to trade until every reference entity has suffered a credit event, or until the product expires. Expiry dates have been set for September 2008 and September 2012.
CBOE issued its first exchange-traded credit derivatives last month, but so far has not seen significant demand for the single-name products; nor has Eurex, which was first into the sector earlier this year. But Joe Levin, the exchange's head of products, told Risk last month: "As we anticipated, it's a very slow start. We do get a lot of enquiries, but we haven't done a trade yet."