Creditex Expands U.S. Electronic Credit-Swaps Index Trading

By Matthew Leising, Bloomberg

Creditex, the credit swaps brokerage owned by Intercontinental Exchange Inc., said it expanded its electronic trading options for indexes as it prepares to meet new derivatives regulations.

Creditex, bought by Intercontinental for $625 million in 2008, has been offering electronic trading for credit-default swaps since 2004 in Europe and 2009 in the U.S., the company said in a statement today. The brokerage, which also offers telephone-based execution, has been offering trades via computer for the Markit CDX investment-grade and high-yield, high-risk indexes since March 7. It plans to register as a swap-execution facility under the Dodd-Frank Act passed last year.

“Trade execution and transparency are enhanced with electronic execution,” Grant Biggar, president of Creditex, said in the statement. “This is the workflow we anticipate will be at the core of the swap-execution facility (SEF) rules once they are finalized.”

The Commodity Futures Trading Commission and the Securities and Exchange Commission have until July to finish writing regulations for swap-execution facilities. Swaps processed by clearinghouses will be required to be traded through such facilities or on regulated exchanges that make prices public.

To contact the reporter on this story: Matthew Leising in New York at mleising@bloomberg.net.

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net.

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