Creditex UK Limited and Markit Group Limited have completed the first electronic Tradeable Tranche Fixings.
They say the development will provide additional transparency, liquidity and confidence to the credit default swap market.
Sixteen leading credit derivatives dealers participated in the first Tradeable Tranche Fixing, which can be seen as an indication of the widespread market support for the newly launched Fixings.
“We launched the Tradeable Tranche Fixings to meet the needs of CDS dealers and investors, and to build on the existing Fixings services which have consistently enjoyed strong dealer support since their launch in 2005,” comments Kevin Gould, Executive Vice President and Head of Data Products Analytics at Markit. “This first Tranche Fixing was a resounding success and, clearly, any initiative that brings greater transparency to a product will promote investor confidence and improve efficiency.”
“Dealer support and feedback was very positive for the inaugural Tradeable Tranche Fixings,” says Rupert Walsh, UK Head of Structured Products at Creditex. “Good volumes were traded across all maturities, Series and Tranches, a happening which should augur well for improving the liquidity and accurately pricing the mark to market on the iTraxx Tranche Series going forward.”
Tradeable Tranche Fixings will be held on the last business day of every month.