Asian markets for credit default swaps – used to protect investors against bond defaults – will in December join the rest of the world in adopting standard coupons for the credit derivatives in a move that is key for the introduction of clearing.

The International Swaps and Derivatives Association, which is introducing the standardisation, said the move would help market participants get price quotations for CDS in the region. This, in turn, should help liquidity around specific contracts, it said.