The first day of trading in credit default swaps following the introduction of new protocols aimed at standardising the way the complex derivatives change hands, exceeded market expectations, according to traders in Europe and the US.

The International Swaps and Derivatives Association, which has over 820 global members including all the world's largest dealing banks, yesterday implemented its "big bang" protocol to standardise the way CDS contracts are traded, increase liquidity and "hardwire" the auction process in the event of default.