Creditex and CreditTrade sign merger deal
25 July 2006 | 1896 views | 0
Creditex Inc. and CreditTrade, Inc. today announced the merger of their companies, creating a global force in the credit derivatives market, to be known as Creditex Group Inc.
Creditex Group Inc. will have leading market positions in the most strategic and fastest-growing sectors in the CDS market: European and North American indices, European and North American structured products – with strong positions across all single-name sectors and emerging markets globally. With offices in New York, New Jersey, London and Singapore, Creditex Group, Inc. is primed to execute over USD $2 trillion in notional in 2006 of single name, emerging markets, index and index tranche credit derivatives.
This merger will strategically position Creditex Group Inc. to take advantage of the fast-growing credit derivatives market, which has expanded at a pace of over 100% annually over the past few years, topping USD $17 trillion in outstanding notional in 2005. The closing is expected to be completed within the next 30 to 60 days, upon receiving approval from the appropriate regulatory bodies. Creditex Group Inc. will have in excess of 225 employees across three continents, working to deliver the best in execution and processing services.
"By combining the two companies' complementary strengths, Creditex Group will be best positioned to lead the market in innovation and voice and electronic execution services," said Sunil Hirani, CEO of Creditex Group Inc.
"Bringing together our market leading positions in Europe and the US in both indices and structured credit will enable us to provide a better and more comprehensive service to our clients," said Paul Ellis, CEO of CreditTrade, Inc.
"This consolidation of two strong players is welcomed; the combined company will be a major liquidity provider globally across all credit derivative sectors and products," said Guy America, Head of European Credit Trading at JP Morgan.
"Creditex pioneered the revolution in electronic trading in the CDS market. The combined company will undoubtedly continue to be leaders in innovation and also offer the highest level of client service," said Simon Morris, Head of European Credit Trading at Goldman Sachs.
"The combined company is uniquely positioned to meet the credit markets' growing and increasingly complex execution needs, whether it's voice, hybrid or electronic delivery," said Mark Davies, Senior Managing Director and Global Head of Credit Trading at Bear Stearns.