Creditex and CreditTrade today announced the completion of their merger, creating a global leader in voice, hybrid and electronic execution in the credit derivatives market.
The transaction has received both NASD and FSA approval. The merged entity - Creditex Group Inc. - will have considerable scale, with a significant presence in North America, the UK, Europe, and Asia. The combined entity is on track to complete credit derivative transactions exceeding $2 trillion in notional value this year.
"Creditex Group is well positioned to serve the diverse needs of a growing, global client base with the most comprehensive execution services," said Sunil Hirani, founder of Creditex, who assumes the position of CEO of Creditex Group. "The new company combines the strengths of two businesses that, joined together, will not only be responsive to market needs, but also be at the forefront of innovation in voice, hybrid and electronic transaction services."
According to Risk Magazine's inter-dealer survey, the new company will rank in the top two in the fastest-growing areas of the market: electronic trading, index transactions, and structured credit products for both North America and Europe. Creditex Group is also well positioned in all single-name sectors and emerging markets. The firm has more than 225 employees in offices in New York, New Jersey, London and Singapore working to deliver the best in execution and processing services.
The new company will consolidate all electronic trading and price dissemination services onto Creditex's award-winning RealTime technology platform. "By streamlining the technology platforms of the two firms, we will be able to provide the highest quality service to our clients," said John Grifonetti, President and COO of the company. "We are actively working with our clients to ensure they get best execution at the highest level of operational efficiency."
The outstanding notional value of credit derivatives grew 52% in the first six months of 2006 to $26 trillion, according to ISDA's Mid-Year 2006 Market Survey. The annualized growth rate for credit derivatives as of mid year is 109%, surpassing last year's record expansion.
In addition to being a market leader in electronic and voice execution in credit derivatives and processing, Creditex Group also has pioneered and developed the Tradable Credit Fixings and Credit Event Fixings that are being used by the International Swaps and Derivatives Association to establish settlement prices for credits in default. A settlement auction for Dura is scheduled on November 28.