Creditex and T-Zero align with TSI

New York-based electronic brokerage Creditex has acquired a minority interest in New York-based syndicated loan settlement platform TSI.

The size of the stake was undisclosed. TSI currently operates largely in the US, but is planning to extend its services to Europe later this year. As part of the deal, TSI will align itself with Creditex’s credit derivatives trade processing platform T-Zero. The two firms said they would work together to provide integrated post-trade processing of loan credit derivatives.

Pat Loret de Mola, chief executive of TSI, said the deal would allow "timely settlement of defaulted loan obligations, loan credit default swaps (LCDSs) and other credit derivatives.”

The venture is intended to benefit from expected growth in LCDS volumes, particularly following the launch of the North American LCDX index, which is anticipated in the next fortnight.