Mark-it Partners is now publishing spreads to enable a daily price fixing on credit default swaps (CDS). The service, launched in March, covers North American and European credits, and is expected to facilitate credit market growth in CDS spread options.
The fixings are determined daily, through rates supplied by a minimum of eight major dealers. From there, a number of cleaning algorithms are applied to ensure that the spreads are truly representative of the market and can be deemed independent and not unduly influenced by the prices from any one dealer.
Marcus Schueler, head of flow CDS marketing, Europe, at JP Morgan, says, “Mark-it Partners’ new service can help support trading operations and could also, over time, significantly enhance liquidity within the marketplace.”