Europe launches fixed prices on CDS indices

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A liquid market for second-generation credit derivatives has moved a step closer in Europe with the launch of a system that fixes pricing on the credit default swap indices. Electronic inter-dealer broker Creditex and CDS pricing service Markit launched the so-called Tradeable Credit Fixings at the end of March, following six months of beta-testing with 19 participating dealers.

Price fixing is a process whereby all the participating banks indicate the spread levels at which they are prepare