IDX Press Release- IDX
Capital launches fixed prices and "aggressor-only"
model to Credit Derivatives trading.
New CDS Brokerage Incorporates
Internet- and Voice-based Transactions
NEW YORK, December 6, 2005 - IDX Capital
(www.idxcap.com), an interdealer broker
(IDB) of credit derivates swaps (CDS)
operating in the over-the-counter (OTC)
market announces launch and opening of
its operations in New York today, with
swaps trading arrangements in place with
some of the largest dealers.
Unlike other IDBs that only operate on
a voice-brokered basis, IDX Capital is
the first IDB to offer the dealer community
live, electronic trading of credit derivatives
in conjunction with Aggressor-Only commissions
via its hybrid trading platform, IDX Live.
Through its technology solutions, the
company will streamline the process of
credit derivatives trade settlement, speed
up the completion of trades, the result
of which lowers clients' transaction costs.
In the current CDS marketplace, most
trades are based on "subjective"
price quotes, as opposed to firm, real-time
live prices at the moment a trade is to
be conducted. IDX Capital has chosen to
pioneer the method of using only executable
firm pricing for its trades via IDX Live,
its electronic platform which will produce
a broader view of current market pricing.
These methods together will boost market
participant confidence and provide the
CDS market with the greater recognition
it deserves.
IDX Capital will be the first IDB to
use an Aggressor-Only model with regard
to the payment of brokerage fees for a
CDS trade. The Aggressor-Only model requires
that the party that initiates the trade
pay the broker's fee - as opposed to both
sides paying, which is currently the norm
in credit derivatives transactions. The
Aggressor-Only model has been used, and
has gained acceptance, in other sectors
of the market-particularly in the areas
of equities, asset-backed securities and
fixed-income instruments. By offering
this model, IDX clients will save at least
50% of their current brokerage bill.
About IDX
Headquartered in New York City, IDX Capital
is an interdealer broker (IDB) of credit
derivatives swaps operating in the over
the counter market. IDX Capital has announced
plans to acquire IDX Derivatives, LLC
a member of the NASD. Through its hybrid
technology platform - IDX Live - IDX Capital
is the first IDB to offer live trading
of credit derivatives in conjunction with
an Aggressor-Only commission model and
processing solutions to streamline the
credit derivative trade settlement process
and lower clients' back end transaction
costs.
