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Wednesday, October 22

NumeriX and R2 launch pricing and valuation tool for credit products

by Sean Sprackling on Wed 22 Oct 2008 08:46 BST

Press Release - 21 October 2008

NumeriX, the leading independent provider of advanced analytics for the derivative and structured products markets, and R2 Financial Technologies, a pioneering firm providing business solutions for pricing and risk profiling structured credit strategies, today announced the availability of NxR2, the first solution of its kind designed to enable easier and more accurate pricing and valuation of the complete spectrum of cash and synthetic credit instruments.

The application provides consistent valuation and risk analytics for credit products, which incorporate detailed information at the collateral level for credit derivatives and structured finance transactions.

In 2008, NumeriX and R2 made a conscious decision to combine their expertise in pricing analytics and risk management to develop the tools necessary to find transparency in an opaque market. As the credit markets continue to be mired in uncertainty, it is only through technological innovation that can connect best-of-breed data sources ... more »

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Monday, October 20

Lombard Risk Announces Reconciliation Module As Key Component of Industry Leading Collateral Management Solution

by Sean Sprackling on Mon 20 Oct 2008 10:25 BST

Press release -17 October 2008
Recent market volatility combined with the growth of OTC derivatives trading has middle office operations struggling to keep pace with reconciliations. Portfolio reconciliation disputes most often arise during the collateral call process. Until resolved, these disputes can result in exposing traders to unnecessary credit risk and generating avoidable write-offs or losses for asset managers. A large percentage of reconciliations are completed using manual spreadsheets, which are hugely inefficient and therefore can't be completed frequently enough. In today's investment climate, investors are increasingly concerned about the quality of the internal financial controls within the accounting operations of those who manage their money. Automated transaction reconciliation solves the major challenges facing collateralised trading operations today including reducing risk, increasing transparency and improving operational standards to ensure competitive advantage and enhanced investor confidence.

The Colline Reconciliation Module is built around an intelligent trade-matching engine that facilitates fast, ... more »

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Thursday, October 16

Liffe concludes agreement to license Markit iTraxx Europe indices for its OTC clearing solution

by Sean Sprackling on Thu 16 Oct 2008 09:14 BST

(16/10/08)

Amsterdam, Brussels, Lisbon, London, New York, Paris, Thursday 16 October 2008 – Liffe, the global derivatives business of NYSE Euronext (NYX), announced today that it has signed a licence agreement with Markit, a financial information services company, to launch credit default swaps (CDS) based on Markit iTraxx Europe indices, bringing a cleared solution for CDS a step closer.

The Markit iTraxx Europe indices are the most widely traded CDS indices for European credit protection. This agreement allows Liffe to offer a new iTraxx product which will clear on Bclear, its proven solution for processing OTC derivative contracts.

Garry Jones, Executive Director of Business Development and Strategy at Liffe, commented: “We are delighted to be leading our CDS initiative on Bclear with the Markit iTraxx indices which are the industry standard. This agreement further enhances and builds on our existing and valued relationship with Markit.”

Bclear will provide existing and ... more »

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Monday, October 13

Industry Group Signs Letter of Intent to Establish Global Central Counterparty Clearing for Credit Default Swaps

by Sean Sprackling on Mon 13 Oct 2008 09:10 BST

New York, NY, October 10, 2008 – A group of leading credit derivative market participants today announced they have joined forces to support a joint global clearing solution for Credit Default Swaps (CDS). Signatories to the letter of intent include The Clearing Corporation, Markit Group, Risk Metrics, and IntercontinentalExchange, Inc. (NYSE: ICE) through its subsidiaries, including ICE US Trust, a New York limited Trust Company (ICE Trust), Creditex and T-Zero. ICE Trust will operate as a New York limited Trust Company and function as global clearinghouse and central counterparty for CDS transactions. ICE Trust plans to become a member of the Federal Reserve System. The letter signals the intention of the signatories to use their best efforts to work together in establishing a clearinghouse that will accomplish the objectives established by the Federal Reserve Bank of New York. more »

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Friday, October 10

Eurex Clearing presents central clearing solution for credit derivatives

by Sean Sprackling on Fri 10 Oct 2008 09:06 BST

10 Oct 2008

Eurex Clearing today presented a central clearing solution for credit derivatives on invitation by the Federal Reserve Bank in New York. The proposal received support from European authorities who also participated in today’s meeting. The Deutsche Bundesbank also backs a European central clearing solution for OTC credit derivatives which will enhance the soundness and stability of European financial markets.

Eurex intends to build a consortium structure aiming to provide shared governance and control. The solution consists of two stages: first, Eurex offers a ready-to-use solution for iTraxx® index contracts, as well as certain single name CDS products. CDX® contracts will be added, subject to signing a license arrangement with Markit. In the first half of 2009, this offering will be complemented by an OTC clearing solution for ISDA documented credit derivatives. The Eurex Clearing solution will be directly linked into the existing data warehouse infrastructure.

Thomas Book, ... more »

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