I understand the effect of recovery rate assumptions on the valuation of off-market CDS trades, and thus the requirement for assumed recovery rates as the market convention moves toward upfront points and fixed coupon trading (i.e. effectively an off-market CDS and cash up front) and clearing.However, the assumed rates are always quite high and very round e.g. 35% for all Japan corporates.If the actual expected recovery rate on a name is, say, 18%, and can be evidenced via recovery swap market quotes and backed up with historical recovery on similar bonds, yet the CDS pricing convention is to assume 35%, how should I price the CDS i.e. which recovery rate should I use? Depending on whether I assume 18% or 35% recovery I get massively different up front payment on new trades.Thanks

Is trading CDS in Asia quite active, compared with EUR?