TradeWeb to Launch First Global Online Market for Credit Derivatives
- First Electronic Auction-Based Trading Platform for Credit Default Swap Indices
- Backed by Top CDS Liquidity Providers
- TradeWeb STP solutions to automate post-trade processing
JERSEY CITY, NJ/ LONDON (4 May 2005) - Thomson TradeWeb, the leading network of online fixed-income markets, and a unit of The Thomson Corporation (NYSE: TOC; TSX: TOC), today announced it has teamed up with three major liquidity providers to launch global Credit Default Swap Indices trading on the first multi-dealer platform of its kind.
The founding members for TradeWeb's dealer-to-client CDS platform include JPMorgan, Goldman Sachs and Morgan Stanley, with more liquidity providers set to join soon. In close coordination with these leading CDS dealers, TradeWeb is currently developing this new online market with an anticipated launch date in Europe and the U.S. in the 2nd half of 2005. Once launched, TradeWeb CDS will be the firm's 12th online market for fixed income and the 2nd in the rapidly growing derivatives markets. It also complements TradeWeb's strong presence in online trading for cash corporate bonds and overall electronic trading franchise, which comprises more than 2,000 institutional investors and 34 major dealers.
TradeWeb's new online market for CDS Indices will offer institutional investors the ability to simultaneously request quotes from multiple dealers electronically and move from trade execution seamlessly to electronic processing. This is enabled by TradeWeb's award-winning Straight-Through Processing (STP) network, TradeXpress, which will significantly contribute to lower operational risk and processing costs for CDS market participants.
Jim Toffey, Chief Executive Officer of Thomson TradeWeb, commented: "The CDS index market is a natural addition to our network of online markets overall and an important extension of our credit franchise. By partnering with the major CDS liquidity providers, we are now executing on the significant opportunity to provide value for market participants in this rapidly growing asset class."
Lee Olesky, President of Thomson TradeWeb added: "TradeWeb is addressing the need for efficiency across the whole trade cycle in the OTC derivatives market. For the CDS index product we will provide the tools for substantial operational risk reduction in the post-trade environment. This is a significant benefit and targets issues that are a real concern to our buy- and sell-side clients."
About Thomson TradeWeb
TradeWeb is the leading online fixed-income trading network with over 7 million trades executed and total volume surpassing $75 trillion since its inception in 1998. TradeWeb's multi-dealer auction model links the trading desks of 34 of the world's leading fixed-income dealers with more than 2,000 buy-side institutions in North America, Europe and Asia.
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 leading standard settlement instructions database.
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.
About Thomson Financial
Thomson Financial is a US$1.73 billion provider of information and technology solutions to the worldwide financial community. Through the widest range of products and services in the industry, Thomson Financial helps clients in more than 70 countries make better decisions, be more productive and achieve superior results. Thomson Financial is part of The Thomson Corporation (www.thomson.com), a global leader in providing integrated information solutions to more than 20 million business and professional customers in the fields of law, tax, accounting, financial services, higher education, reference information, corporate e-learning and assessment, scientific research and healthcare. With revenues of US$8.10 billion, The Thomson Corporation lists its common shares on the New York and Toronto stock exchanges (NYSE: TOC; TSX: TOC).