ProShares filed with the SEC to start exchange traded funds backed by credit default swaps, Reuters reports.

The advent of regulations that will lessen the risks of derivative market contracts, and that may attract new kinds of investors. More trades have been moved to central clearing houses, allowing investors to avoid the bank's risk exposure. Yet retail investors may be less poised to jump on the bandwagon.

"Central clearing makes it much simpler to launch new products, but there is some concern about the CDS market. It may take education for retail to understand it," said Peter Tchir, founder of advisory firm TF Market Advisors and a former credit derivative trader.

 

Edited by: InvestmentWires Staff, 


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