CreditTrade and Totem in credit derivatives joint venture

CreditTrade and Totem in credit derivatives joint venture

CreditTrade is to launch a joint venture with valuations clearing house Totem Market Valuations to provide a consensus-based mark-to-market credit derivatives service.

The joint venture company, Credit Accord, will provide banks with regular collection of credit derivatives data from participating institutions, which will then be made anonymous, aggregated and validated.

Under the terms of the joint venture, CreditTrade will supply pricing data for validation of Credit Accord data as well as consultation and IT support. Totem will supply operational infrastructure, data collection and the administration of the service. Both companies will work together on marketing and branding and general management of Credit Accord.

Krishna Biltoo, head of product development at CreditTrade and responsible for data sales, says: "This new joint venture will help to bring more transparency to the credit derivatives marketplace by bringing valid aggregated data to institutions."

James Prichard, director, Totem Market Valuations, adds: "Credit Accord clients can ask the questions they need to resolve mark-to-market issues without giving away their positions or identity."

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