Where Credit derivatives are most often traded?

Credit derivatives are most often traded in the over-the-counter (OTC) market, where financial institutions, hedge funds, and other investors negotiate terms directly between parties. This market allows for greater customization of contracts compared to exchange-traded options. Major financial centers like New York, London, and Hong Kong serve as key hubs for these transactions. Additionally, some credit derivatives, such as credit default swaps (CDS), can also be found on specialized platforms and exchanges as regulatory frameworks evolve.