Creditex Group Inc.

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Creditex Group Inc.
Founded 1999
Headquarters New York, London and Singapore
Website http://www.creditex.com/index.html

Creditex Group Inc. is a wholly owned subsidiary of Intercontinental Exchange. It is an interdealer broker that provides execution and processing of credit default swaps (CDS) and corporate bonds in the U.S., Europe and Asia. It offers a hybrid model of voice and electronic execution. It also was the first to introduce electronic processing and execution in the CDS market in 2004 and is used by more than 1,000 participants.[1][2]

The firm specializes in execution for single-name CDS, CDS indexes, CDS index tranches and bespoke products. It also handles delta neutral auctions in single name CDS, launched in 2008 as a way to reduce so-called curve or gap risk matching buying and sellers who want to switch one-maturity for another.[3][4]

ICE offers a post-trading processing service that is connected to Creditex called ICE Link, which supports all cleared and OTC trades. Creditex trades are cleared through ICE's two clearing facilities, ICE Clear Credit and ICE Clear Europe.[5]

History

Creditex was co-founded in 2000 by Sunil Hirani, who served as its CEO until it was sold to ICE in 2008. He departed Creditex shortly after the acquisition and started a swap execution facility called TrueEX. [6]

ICE acquired Creditex in September 2008 for $625 million in cash and stock. The transaction was composed of approximately $565 million in ICE common stock and $60 million in cash. [7]

Creditex's platform executed over $3 trillion notional in credit default swap (CDS) indices, single-name CDS and standardized structured credit products in 2008. From 2008 when ICE Clear Credit was created and 2009 when ICE Clear Europe began clearing CDS trades through February 2016, the two facilities cleared $74.8 trillion in gross notional of CDS contracts.

On July 29, 2016, ICE announced it had agreed to sell certain U.S. voice brokerage operations of Creditex to Tullett Prebon. ICE will retain the electronically traded markets and systems, post-trade connectivity platforms and intellectual property of Creditex. The transaction is subject to FINRA approval.[8]

Key People

References

  1. About Creditex. Creditex.
  2. ICE Services/Creditex. ICE.
  3. Products OTC. ICE.
  4. Creditex Rolls out Electronic Auction To Reduce Risk in Credit Default Swaps. ICE.
  5. Creditex Rolls out Electronic Auction To Reduce Risk in Credit Default Swaps. ICE.
  6. ICE Announced Management Changes in Creditex CDS Business. ICE.
  7. Press Release. ICE.
  8. Intercontinental Exchange Announces Agreement For The Sale Of The Voice Brokerage Operations Of Creditex To Tullett Prebon. Mondovisione.