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Shaking Up the Credit Derivatives Market: Profiling the Electronic Trading Platforms & Top Post-Trade Vendors

Shaking Up the Credit Derivatives Market: Profiling the Electronic Trading Platforms & Top Post-Trade Vendors

By 2008, Aite Group predicts IT expenditures on credit derivatives trading and post-trade technologies will increase over 50% from 2005 levels. Recent trends in automation, particularly in the credit derivatives markets, are driving buy and sell-side firm
By Brad Bailey

Boston, MA, July 24, 2006 – According to research by Aite Group, LLC, significant moves have been made by vendors to provide technology that supports the front-end trading and the post-trade processing of credit derivatives. The migration of credit default swaps (CDS) to electronic trading platforms, coupled with the industry's drive to mitigate operational risk and cut costs, is leading buy and sell-side firms to purchase solutions from third-party vendors. In this report, Aite Group provides detailed profiles of the major vendors and firms offering electronic trading platforms for credit default swaps and credit derivative indices in both the dealer-to-client and the inter-dealer broker spaces. The report also features vendors that provide connectivity, affirmation, confirmation, matching and settlement solutions.

According to Brad Bailey, senior analyst at Aite Group and author of the report, "Vendors have built much of their value proposition around the evolution and success of DTCC Deriv/SERV. As a result, many vendors are leveraging this effort and building solutions around connecting dealers and buy-side firms to the DTCC."

This is a 50-page Impact Report. Clients of Aite Group's Institutional Securities service can download the report.