Investor demand for insurance against sovereign-debt defaults fuelled a surge in trading of emerging-market credit default swaps, according to a survey from EMTA, a trade group. Emerging-market CDS contracts jumped from $355 billion in the second quarter of last year to $658 billion in the same period this year. "We believe the standardisation efforts made by the financial community in 2009 have contributed to better liquidity in the CDS markets," said Hongtao Jiang, director of emerging-market strategy at Deutsche Bank.

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