The sleepy derivatives market could get a wake-up call over the next week, as California sells $7 billion of short-term securities. The California securities are expected to provide fertile ground for derivatives dealers.

Today's scheduled $4 billion issue of revenue anticipation warrants will be sold competitively without primary market derivatives. But the warrants, which mature in 22 months, will be snapped up by firms hoping to create secondary market derivatives. Despite the state's recent credit woes, demand for secondary market derivatives based on California paper remains strong, market sources said.

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