Thomson TradeWeb to Provide Comprehensive STP Solution for Credit Markets; Forges Link with Omgeo
- CreditXpress STP Service to Launch In July
- All Corporate Bonds and Credit Default Swaps to be Supported
- All Voice and Electronically-Executed Trades Eligible
- Any Dealer or Institutional Investor Able to Participate
- Seamless Connectivity with Omgeo and DTCC
June 20, 2006, (Jersey City, NJ); Thomson TradeWeb, the leading online marketplace for Fixed Income and Derivatives, and part of The Thomson Corporation (NYSE: TOC; TSX: TOC), has announced a major initiative to offer a complete suite of straight-through processing services for the corporate debt and credit derivatives markets. The first phase of the new service, CreditXpress, will be rolled out in July 2006.
CreditXpress will enable participants to process the full spectrum of corporate bond and credit default swap trades, including all voice and electronically-executed transactions.
All dealers and institutional investors will be eligible to join CreditXpress, regardless of whether they have a trading relationship with TradeWeb. Existing clients of Thomson TradeWeb's patent-pending suite of STP services (TradeXpress and AccountNet) will benefit from being able to broaden their usage to include all credit market trades, including those executed off the TradeWeb network.
CreditXpress will allow users to verify trade details; enable the electronic processing of allocations; and deliver trade information to confirmation providers, Omgeo TradeMatch and DTCC's Deriv/SERV.
As part of an STP Partnership with Omgeo, the leading provider of global trade management services, Thomson TradeWeb and Omgeo have agreed to build seamless links between the two networks to ensure the greatest possible trade processing efficiencies for all market participants. A new link from CreditXpress will enable users to take advantage of Omgeo TradeMatch's real-time central trade matching and confirmation.
Additionally, TradeWeb will also be expanding the use of its FIX protocol messaging solutions - currently available for buy-side customers - to the dealer community.
CreditXpress will be sold separately from TradeWeb's execution services to ensure that the industry gains maximum benefit from the processing efficiencies it offers.
"For some time the industry has been asking for a solution such as CreditXpress. We are delighted that we are now able to offer a cost-effective service like this, which helps all credit market participants reduce trade processing risk, saving time and money. This is a great step forward for the industry," said Jim Toffey, CEO of Thomson TradeWeb, a unit of The Thomson Corporation (NYSE: TOC; TSX: TOC).
"We are pleased to support TradeWeb's efforts to provide greater efficiency to the credit markets throughout the trade lifecycle. CreditXpress reinforces the existing partnership with TradeWeb and builds on the progress Omgeo has already made in facilitating STP for a wide range of equity and fixed income instruments," said Adam Bryan, CEO of Omgeo, a joint venture between the DTCC and Thomson Financial, a division of The Thomson Corporation.
"We are not alone in wanting a single solution for trade processing in the credit markets. Until the market adopts a standard, inefficiencies will remain. CreditXpress has all the hallmarks of the solution that the industry is looking for," said Michael Wyne, Managing Director, Fischer Francis Trees & Watts.
Among the unique features offered by CreditXpress are:
- Coverage of all cash and derivative credit instruments, including:
- Investment grade corporate bonds
- High-yield bonds
- Emerging market bonds
- Single-name credit default swaps (CDS)
- CDS indices
- CDS index tranches
- Seamless connectivity between CreditXpress, Omgeo TradeMatch and DTCC's Deriv/SERV for one-stop trade processing
- Fully-automated novation processing with real-time DTCC link
- Real-time position management, using real-time dealer pricing
- Electronic links to prime brokers
About Thomson TradeWeb
TradeWeb is the leading online fixed-income trading network with over 9 million trades executed and total volume surpassing $125 trillion since its inception in 1998. TradeWeb's multi-dealer auction model links the trading desks of 36 of the world's leading Fixed-Income dealers with more than 2,200 buy-side institutions in North America, Europe, and Asia. Over $200 billion in trading volume gets executed over TradeWeb each day.
The business is also the leading electronic "straight-through processing" network for the fixed-income markets, providing dealers and buy-side institutions with paperless trade allocations and confirmations on its fully-integrated TradeXpress network. TradeWeb's STP network also includes AccountNet, the first derivatives counterparty management tool and the leading data warehouse for standing settlement instructions and OTC derivatives legal documentation.
Thomson TradeWeb operates within the Thomson Financial group of businesses. TradeWeb LLC is a member of the NASD. TradeWeb Europe Limited is regulated by the U.K. Financial Services Authority.
Omgeo plays a core role as the orchestrator of post-trade pre-settlement trade management within the global securities industry. With more than 6,000 users in 42 countries around the globe, Omgeo acts as a central hub and go-to resource for solutions that expedite information flow and connect systems in order to fuel productivity, reduce costs and minimize risks for investment managers, broker/dealers and custodian banks.
Through a resolute commitment to working with the industry and all its parts to continually drive efficiency, Omgeo has achieved a stature that is unmatched in its field. Omgeo LLC is a global joint venture of the Depository Trust & Clearing Corporation (DTCC) and Thomson Financial. It is the strength and resources of these two, influential organizations that inform and underpin our innovative, market-leading work.
About Thomson Corporation
The Thomson Corporation (www.thomson.com), with 2005 revenues of approximately $8.5 billion, is a global leader in providing integrated information solutions to business and professional customers. Thomson provides value-added information, software tools and applications to more than 20 million users in the fields of law, tax, accounting, financial services, higher education, reference information, corporate e-learning and assessment, scientific research and healthcare. With operational headquarters in Stamford, Conn., Thomson has approximately 40,500 employees and provides services in approximately 130 countries. The Corporation's common shares are listed on the New York and Toronto stock exchanges (NYSE: TOC; TSX: TOC).