Thomson TradeWeb has teamed up with three major liquidity providers to launch global Credit Default Swap Indices trading on the first multi-dealer platform of its kind.
The founding members for TradeWeb’s dealer-to-client CDS platform include JPMorgan, Goldman Sachs and Morgan Stanley, with more liquidity providers set to join soon. In close coordination with these leading CDS dealers, TradeWeb is currently developing this new online market with an anticipated launch date in Europe and the U.S. in the 2nd half of 2005. Once launched, TradeWeb CDS will be the firm’s 12th online market for fixed income and the 2nd in the rapidly growing derivatives markets. It also complements TradeWeb’s strong presence in online trading for cash corporate bonds and overall electronic trading franchise, which comprises more than 2,000 institutional investors and 34 major dealers.
TradeWeb’s new online market for CDS Indices will offer institutional investors the ability to simultaneously request quotes from multiple dealers electronically and move from trade execution seamlessly to electronic processing. This is enabled by TradeWeb’s award-winning Straight-Through Processing (STP) network, TradeXpress, which will significantly contribute to lower operational risk and processing costs for CDS market participants.
Jim Toffey, Chief Executive Officer of Thomson TradeWeb, commented: “The CDS index market is a natural addition to our network of online markets overall and an important extension of our credit franchise. By partnering with the major CDS liquidity providers, we are now executing on the significant opportunity to provide value for market participants in this rapidly growing asset class.”