CQS Selects Markit For Derivatives Trade Processing

London, 13th September 2006 - Markit Group Limited ("Markit"), the leading provider of independent data, portfolio valuations and trade processing for the OTC derivative markets, today announced that CQS has become a client of its trade processing service. CQS is a global asset management group with investment operations in London and Hong Kong. The group has $5 billion assets under management across a range of strategies.

Markit Trade Processing is an end-to-end service that offers buy-side and sell-side clients the ability to affirm their OTC derivative trades, and to confirm them by using links to industry utilities such as the Depository Trust & Clearing Corporation (DTCC). The service spans all asset classes and instruments, and automates and streamlines both STP (Straight Through Processing) and non-STP trades. Last month alone, Markit's trade processing platform handled over 40,000 trades for more than 100 active clients.

Novations, terminations and dispute resolution are also supported, and comprehensive reports are provided to give users a complete view of their processing risk. Portfolio reconciliation has recently been added to the service to streamline clients' otherwise onerous daily and monthly reconciliation process.

Jason Parker, Head of Middle Office at CQS said: "Given the onward march of the OTC derivative markets, and the increasing numbers of participants entering these markets, it is now crucial to embrace straight-through-processing. CQS feels the main strength of Markit's service is its ability to facilitate OTC processing workflow across counterparties and asset classes, and to provide a comprehensive overview and audit trail."

"We welcome the opportunity to provide CQS with a solution to their OTC trade processing needs. This issue continues to be a major focus for regulators and the industry at large, and we are seeing growing demand for our trade processing service from clients active in the global OTC derivative markets. They recognise the importance of efficiency in order to keep costs per transaction to a minimum and to ensure regulatory compliance", commented Leo Schlinkert, Executive Vice President and Head of Trade Processing and Distribution at Markit.

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For further information, please contact:

Markit Group Limited
Teresa Chick
Director, Corporate Communications
Tel: +44 20 7260 2094
Email: teresa.chick@markit.com

About Markit Group

Markit Group Limited is the leading provider of independent pricing, reference data, portfolio valuations and OTC derivatives trade processing to the global financial and commodities markets. The company receives daily data contributions from over 65 dealing firms, and its services are used by over 450 institutions to enhance trading operations, reduce risk and manage compliance.

Markit's position in the derivatives markets has been acknowledged by the industry with awards from Credit for Best Operational Support Services Provider 2006; Inside Market Data for Reference Data Provider of the Year 2006, and Company to Watch 2006; Risk Magazine for Trading Initiative of the Year 2006 (Credit Event Fixings); Structured Finance International's Editor's Award for Advancing Structured Finance 2006; International Securitisation Report's Editor's Award for Innovation 2005; International Financing Review's Innovation of the Year 2005 (Credit Event Fixings); Financial News' Best Derivatives Data Provider 2005; and Institutional Investor's Operations Management Award for Vendor of the Year 2005.

For additional information please visit www.markit.com

About CQS

CQS is a global asset manager established in 1999 and which currently manages a family of absolute return and directional hedge funds. As at 31 December 2005, CQS had assets of approximately USD 5.0 billion under management and has offices in London, Hong Kong, Geneva and Jersey.