London-based data provider Markit has created a free licence for the Markit Reference Entity Database (Red), aimed at smaller buy-side firms.
Firms with low credit default swap (CDS) trading volumes that use the Depository Trust and Clearing Corporation’s DerivServ platform for trade confirmation will not be charged a fee for using the database, according to the terms of the new licence.
Markit Red is used to identify reference entities and reference obligations for CDS contracts, reducing legal and operational risk. The service uses legal representatives in over 100 countries to source and scrutinise all relevant documentation to provide subscribers with an understanding of each entity.
Markit says this initiative aims to support the commitments made in March to the New York Fed by the Operations Management Group (OMG), a body of 18 dealers formed in December to address the issue of confirmation backlogs in over-the-counter markets. These commitments include a target of accurately submitting nine-digit Red codes on 100% of index trades and 90% of single-name trades by July 2008.
"We are keen to encourage the broad buy-side community to adopt Red. We recognise that one size doesn’t fit all and have now developed a new licence for the smaller firms. This will allow them to operate consistently with the rest of the market, and will help the industry achieve the commitments made to the New York Fed in March this year,” said Ed Chidsey, director of Markit Red.
More on Infrastructure
US regulatory concerns about liquidity of government securities collateral could be resolved by access to the Fed’s discount window, CCP officials say
High-frequency traders have been viewed with suspicion for some time. Now critics claim exchanges are conspiring with the traders to develop tools that benefit them and disadvantage ordinary investo...
The benefits of local trade repositories outweigh the possible disadvantages of multiple reporting requirements, says executive director of HKMA’s financial infrastructure unit
Sign up for Risk.net email alerts
Nominated for two technology awards
Nominated for post trade technology award
Sponsored webinar: Collateral and counterparty tracking
Isda directors warn on fragmentation, access and liquidity - but expect problems to pass
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.