JPMorgan, Morgan Stanley and BNP Paribas expect to start trading TRACX, their European index of credit-default swaps, early this week. The product, which was originally scheduled for release last month was put on hold while the International Swaps and Derivatives Association finalized the 2003 credit derivatives definitions. Clients will be able to buy and sell protection in funded and unfunded forms, according to an official familiar with the index.
Officials at the firms expect the index to be a highly traded product. JPMorgan has traded around USD10 billion on its European Jeci index in the last year and Morgan Stanley has traded around USD40-50 billion on its U.S. index in the same period.
The U.S. version of the index is still scheduled to start trading on July 25.
