CreditTrade and Creditex join forces

London-based interdealer broker CreditTrade and New York-based credit derivatives electronic trading platform Creditex have announced they will merge to form a single company to offer voice and electronic execution services in the fast-growing credit derivatives market.

The new company, to be known as Creditex Group, expects to execute more than $2 trillion in notional of single-name, emerging markets, index and index tranche credit derivatives this year. The credit derivatives market grew by 105% last year, with notional principal outstanding hitting $17.3 trillion at the end of 2005, according to the International Swaps and Derivatives Association. Paul Ellis, chief executive of CreditTrade told Risk the merger was a “revenue synergy merger” and not a “cost synergy merger”.“Overall, on volumes of transactions, we will be a close second to GFI. In certain sectors, however, we will certainly be on top of them,” says Ellis. “This is something we have been thinking about for three or four years, and the credit derivatives market has now reached the right level of maturity.”The merger, which will create a company with offices in New York, New Jersey, London and Singapore, is expected to be completed in the next 30 to 60 days. “By combining the two companies' complementary strengths, Creditex Group will be best positioned to lead the market in innovation and voice and electronic execution services,” adds Sunil Hirani, chief executive of Creditex Group.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here