LONDON (HedgeWorld.com)–Creditex announced the launch of an electronic trading platform for trading credit indexes that is designed to support the trading of all credit default swap indexes, according to officials.
The system is structured to provide price and trade transparency, while running on Creditex’s RealTime technology. According to Creditex officials, the technology allows traders to place live and actionable orders and is a first of its kind to allow electronic trading of indexes such as iBoxx and TRAC-X.
Clients also are able to receive intraday and end-of-day electronic feeds of live index prices in addition to trade confirmations that aid in the trade reconciliation process.
The firm worked closely with traders at several institutions to develop the trading protocol and the user interface on the trading platform. For the last several weeks, it has been piloted in London with “key liquidity providers” and has started to execute electronic trades.
Over the coming weeks, Creditex plans on rolling out the trading system to clients in Europe and North America.
“The electronic execution of credit index products is essential for the evolution of the CDS market,” said Sunil Hirani, CEO of London-based Creditex. He expects the trading system will offer greater efficiencies in order execution, increased liquidity in the market and will significantly reduce the implicit costs associated with trading.