Post Trade Processing
Creditex provides comprehensive straight-through processing (STP) services for electronic, hybrid and voice trading via the ICE Link STP Service. This enables Creditex to provide clients with the benefits of ICE Link's market-standard connectivity and the expertise of their dedicated integration and STP support team. The net effect for Creditex's clients is a higher level of service, reduced development cost and a faster time to "go-live". Visit ICE Link for more information.
Portfolio Compression reduces the overall notional size and number of outstanding contracts in credit derivative portfolios without changing the overall risk profile or present value of the portfolios. This is achieved by terminating existing trades and replacing them with a smaller number of new replacement trades that carry the same risk profile and cashflows as the initial portfolio, but require a smaller amount of regulatory capital to be held against the positions.
Creditex and Markit were selected by the International Swaps and Derivatives Association (ISDA) to provide infrastructure to support commitments made by major market participants to the Federal Reserve Bank of New York relating to improved operational efficiency and risk reduction.
Portfolio Compression cycles are run on a regular basis in North America to compress the most actively traded single name CDS contracts systematically across all major sectors.
Since the first Portfolio Compression cycle on August 26, 2008, the process has reduced over $8.5 trillion* of CDS notional, providing significant savings to participants by reducing regulatory capital holdings and the operational costs associated with maintaining a larger portfolio of contracts.*Updated July 2013