Press release - 2 July 2008
Creditex
and Markit today announced a joint initiative to launch an
industry-wide portfolio compression platform for the credit derivative
market. This process is the first of its kind and represents a
significant improvement over previous tear-up processes. The platform
supports commitments made by major market participants to the Federal
Reserve Bank of New York relating to improved operational efficiency
and risk reduction.
Developed in response to a request by the International Swaps and Derivatives Association (ISDA) on behalf of major credit derivative dealers, the platform will reduce operational risk and improve capital efficiency by reducing the number of trades and the gross notional outstanding value of single-name credit default swaps (CDS) held by dealers. This will be achieved through a multi-lateral portfolio “compression” or “tear-up” process that is scheduled to launch in the third quarter of 2008.
The new compression approach improves on previous ... more »
Developed in response to a request by the International Swaps and Derivatives Association (ISDA) on behalf of major credit derivative dealers, the platform will reduce operational risk and improve capital efficiency by reducing the number of trades and the gross notional outstanding value of single-name credit default swaps (CDS) held by dealers. This will be achieved through a multi-lateral portfolio “compression” or “tear-up” process that is scheduled to launch in the third quarter of 2008.
The new compression approach improves on previous ... more »
