Jeffrey Tober, head of credit derivatives at GFInet, said: "To date, default swap price information has been difficult to obtain, especially for product controllers and risk managers. Our goal is to bring greater transparency to the market."
The product is aimed at a wide variety of market participants, and the company will offer different levels of the service. Richard Williams, head of credit derivatives at Abbey National Financial Products, said: "A market-based, independent price verification service such as that proposed by GFI will increase the confidence institutions have in the price and monitoring process. A broader range of institutions should find the market attractive for both trading and hedging purposes."