Eurex is confident that the world’s first exchange-traded credit derivatives contract will take off when it launches on March 27, 2007 in spite of the reticence of many investment banks about becoming involved with the product.

The German-based derivatives exchange, partly owned by Deutsche Börse, said on Thursday that the product had huge potential and would open the world of credit derivatives to a broader range of participants, many of whom are restricted from trading in the established, private, “over-the-counter” markets.