Singapore Exchange Joins Forces With Dow Jones To List And Trade Credit Derivatives

Singapore Exchange Limited (SGX) and Dow Jones Indexes have signed a Memorandum of Understanding to pioneer the development of exchange traded credit derivatives contracts based on the Dow Jones TRAC X indexes. Credit derivatives which enable banks to transfer credit

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Singapore Exchange Limited (SGX) and Dow Jones Indexes have signed a Memorandum of Understanding to pioneer the development of exchange traded credit derivatives contracts based on the Dow Jones TRAC-X indexes.

Credit derivatives – which enable banks to transfer credit risk from one party to another – are currently traded OTC. SGX reckons growing institutional interest in credit derivatives means there is room to create a 24/7 global network for trading them which will replicate the success of the Mutual Offset System link with the Chicago Mercantile Exchange.

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