Creditex, Markit Successfully Complete First Electronic Tradeable Tranche Fixings

London and New York, 5 February, 2007 – Creditex UK Limited (“Creditex”) and Markit Group Limited (“Markit”) today announced the successful completion of the first electronic Tradeable Tranche Fixings, providing additional transparency, liquidity and confidence in the rapidly growing credit default swap (CDS) market.

The first Tradeable Tranche Fixings took place on January 31, 2007 at 11:30 GMT. Sixteen leading credit derivatives dealers participated, an indication of the widespread market support for the newly launched Fixings. The Tradeable Tranche Fixings follow the same methodology as the weekly iTraxx Fixings and results are posted on www.creditfixings.com, a freely accessible website.

Tradeable Tranche Fixings will be held on the last business day of every month and will enable market participants to mark their positions to market, and will provide a benchmark reference and settlement rate for structured products.       

Kevin Gould, Executive Vice President and Head of Data Products and Analytics at Markit, commented: ““We launched the Tradeable Tranche Fixings to meet the needs of CDS dealers and investors, and to build on the existing Fixings services which have consistently enjoyed strong dealer support since their launch in 2005.  This first Tranche Fixing was a resounding success and, clearly, any initiative that brings greater transparency to a product will promote investor confidence and improve efficiency.”

“Dealer support and feedback was very positive for the inaugural Tradeable Tranche Fixings,” said Rupert Walsh, UK Head of Structured Products at Creditex. “This comes after a significant period of consultation and work with the dealer community to bring together a real-time electronic solution, which we will continue to enhance and improve. Good volumes were traded across all maturities, Series and Tranches, a happening which should augur well for improving the liquidity and accurately pricing the mark to market on the iTraxx Tranche Series going forward.”   

The Tradeable Tranche Fixings form part of the Credit Fixings initiative launched by Creditex and Markit in 2005.  Since that time, iTraxx fixings have taken place weekly to provide a standard benchmark and settlement rate.  The initiative also includes Credit Event Fixings, an industry standard mechanism designed to ease the settlement of credit derivative trades following a corporate default.  The process is overseen by ISDA. 

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For further information, please contact:

Markit

Teresa Chick (London) +44 20 7260 2094

Creditex

Brendan Nel (London) +44 20 7429 3041

Annette Bronkesh (NY) +1 973 778 8648 

About Creditex

Creditex Group is the global leader and innovator in electronic and voice execution in the credit derivatives markets.  From offices in New York, New Jersey, Singapore and London, the firm provides the full breadth of transactions services in CDS indices, index Tranches, single name CDS as well as structured products. A pioneer in bringing many new initiatives to the marketplace, Creditex led the way in e-trading and in automating the execution and processing of CDS transactions, including straight through processing.  The platform, which is set to surpass $2 trillion in notional value of CDS transactions this year, is used by more than 800 traders at the world’s largest financial institutions. In 2005, Creditex and Markit pioneered the first Tradeable Credit Fixings, a milestone in bringing additional confidence and transparency to the market by providing a standard benchmark and settlement rate. In November 2006, the firm expanded substantially by combining its business with that of CreditTrade, a leading inter-dealer broker.

Creditex has consistently earned accolades in leading financial media and business rankings including Credit, Euromoney, Forbes, Institutional Investor, Risk and IFR.  Most recently, the firm was named to Deloitte New York Technology Fast 50, a ranking of the fastest growing companies in NYC as compiled by Deloitte & Touche USA.  Last year, it won the IFR Innovation of the Year Award with Markit for pioneering the Credit Event Fixings. Creditex's technology continues to set the standard for innovation in the credit derivatives market, and its highly experienced staff is committed to delivering best-in-class client service.

Paternoster House | Third Floor | 65 St. Paul’s Churchyard | London | EC4M 8AB

T +44 (0)20 7429 3000 | F +44 (0)20 7429 3003 www.creditex.com

About Markit

Markit Group Limited is the leading provider of independent data, portfolio valuations and OTC derivatives trade processing to the global financial and commodities markets.  The company receives daily data contributions from over 75 dealing firms, and its services are used by almost 1,000 institutions to enhance trading operations, reduce risk and manage compliance. 

Markit’s position in the derivatives markets has been acknowledged by the industry with numerous awards.  In 2006, the company won Operations Management’s Vendor of the Year award (Trade Processing); Financial News’ Best Derivatives Data Solution and Best New Vendor Solution (Portfolio Valuations); Credit’s Best Operational Support Services Provider; Inside Market Data’s Reference Data Provider of the Year, and Company to Watch; Risk’s Trading Initiative of the Year (Credit Event Fixings); and Structured Finance International’s Editor’s Award for Advancing Structured Finance.  In 2005, Markit received International Securitisation Report’s Editor’s Award for Innovation; International Financing Review’s Innovation of the Year (Credit Event Fixings); Financial News’ Best Derivatives Data Provider; and Operations Management’s Vendor of the Year award.