The inter-dealer broker, IDX Capital, best known for live-screen, aggressor-only brokerage platform for credit derivatives, announced that is has launched two new fixed-income desks brokering asset-backed credit default swaps derivatives (ABX) and commercial mortgage-backed credit default swaps derivatives (CMBX).
“Since IDX’s launch in December of 2005, the CDS market and our customers have embraced our iconoclastic brokerage model in which we offer hybrid electronic and voice trading of credit derivatives in conjunction with aggressor-only commissions, said James Mirenda, CEO of IDX. Given the cost- savings that they have realized over the past few months, the major banks trading CDS products have requested that we create an ABX and CMBX desk to prevent the high-priced, inefficient legacy brokerage model from taking place with these new products.”
IDX Capitals aggressor-only model requires that the party that initiates a trade pay the broker’s fee, as opposed to both sides paying, which is currently the norm in credit derivatives transactions.