Structured credit

There's no doubt about it, things have changed in the credit derivatives market. A little more than 12 months ago, virtually all the focus (and investment) was on the glamour boys and girls of the front office. Those slaving away in the engine room – the back office – were more or less left to get on with confirming and settling ever-increasing numbers of trades.

Not surprisingly, things got a little backed up as trading volumes recorded double-digit growth year after year. The UK Financial Services Authority (FSA) says deal volumes rose by 50% over the first half of 2005 – but the volume of unsigned confirmations rose by 70% over the same period. It was considered serious enough for the supervisor to write a letter to banks last February warning them about the level of unsigned confirmations – concern that was echoed by the New York Federal Reserve Bank