Creditex has launched an electronic brokering platform for credit-default swaps referenced to indices, such as iBoxx and TRAC-X. Sunil Hirani, ceo in New York, said it is able to pass on huge cost savings to dealers because default swaps referenced to indices are less volatile, have tighter bid/offer spreads and are more liquid than single name swaps.
A trader at a major U.S. bank said credit-default swaps referenced to indices now account for around 20% of its trading book.
