Creditex Group Inc., in a move to capitalize on the anticipated growth in loan-only credit default swaps (LCDS), has acquired a minority stake in privately held Trade Settlement Inc., a provider of settlement services to the global primary and secondary syndicated loan markets.
As part of the transaction, the two firms also announced a partnership between TSI and T-Zero, a credit derivative processing platform which is an independently managed subsidiary of Creditex Group.
The investment by Creditex Group comes as TSI prepares to expand its post-trade platform for primary and secondary syndicated loans to the European market. TSI already has gained rapid adoption among participants in the US loan market and will provide significant post-trade benefits to European market participants later this year.
“We are very pleased to make this strategic investment in TSI,” says Sunil Hirani, CEO of Creditex Group. “This relationship is a natural extension of our efforts to work with the industry to reduce operational risk and ensure a smooth, post-trade environment. We look forward to TSI’s continued growth and success in the US and to the expansion of its platform and services in Europe.”