Credit Default Swap (CDS) Trading

MarketAxess brings a broad and established network of institutional credit investors and global dealers, deep expertise in the credit markets, and fully-electronic trading protocols for CDS.

Trading CDS on MarketAxess

MarketAxess was the first platform to offer electronic trading of CDS indices in 2005 and today offers a complete solution for the trading of clearable and non-clearable CDS instruments. MarketAxess allows global institutions to efficiently trade corporate bonds and derivatives – CDS index, options, and single names - on a single platform.

The platform offers streaming executable markets using Click-to-Trade (CTT), Request-for-Quote (RFQ), and Request for Market (RFM) protocols for CDS single-names, and North American (CDX) and European (iTraxx) indices.

Bringing further innovation to the CDS market, MarketAxess recently launched ‘MATCH’ the first independent all-to-all central limit order book (CLOB) for CDS single names with Barclays acting as the primary market maker. Market participants can anonymously transact CDS single names and benefit from:

  • Better prices through a real-time order matching system and a larger access to counterparties’ pool
  • Efficient execution via straight-through-processing for greater post-trade efficiency and risk management.

Benefits of Trading CDS on MarketAxess include:

  • Leadership: MarketAxess has over 12 years of experience and an extensive investor and dealer network as a market leader in credit e-trading
  • Network: MarketAxess provides access to an extensive network of over 1,000 global credit investors and broker-dealers
  • Trusted, market-neutral platform: Meets projected SEF governance requirements and is a publicly traded company (NASDAQ: MKTX)
  • Multi-Asset: The only platform to offer CDS indices, CDS single-names, and index options
  • Multiple Trading Protocols: MarketAxess offers Click-to-Trade, Request-for-Quote, Request-for-Market, Central Limit Order Book and roll trading

MarketAxess is also regulated as a multilateral trading facility (MTF) in Europe.

MarketAxess SEF Corporation was granted temporary registration by the CFTC in September and has been operating as a Swap Execution Facility (SEF) since October 2, 2013. Please visit our SEF webpage for more information about SEF trading on MarketAxess.

Swaps Clearing Mandate under Dodd-Frank

MarketAxess offers connectivity solutions to help institutional investors and hedge funds facilitate links to available clearing houses in support of mandatory clearing of swaps in the U.S. and Europe.

In the U.S., the OTC clearing mandate required under the Dodd-Frank legislation has been fully in effect since Monday September 9, 2013. Firms defined as part of Category I (Swap dealers, major swap participants, and active funds swaps), Category II (Commodity pools, private funds, and non third-party sub account), and Category III (Accounts managed by third-party investment managers, ERISA pension plans, and entities that were not subject to the Commission’s first two implementation deadlines) are required to clear eligible CDS products that fall under the jurisdiction of the CFTC.

  • Clearing Connectivity: Connectivity to both ICE and CME for seamless communication during and after the trade
  • Custom Workflow: MarketAxess can send and receive derivative trade messages to and from your order management system
  • Custom Development: Leverage MarketAxess' experienced business analysts and integration teams to establish and maintain clearing workflow and connectivity
  • Electronic Audit Trail: Trade details are electronically captured and recorded for compliance and risk management purposes
  • Affirmation Platform Connectivity: Connectivity to the industry's major affirmation hubs
  • Swap Data Repository (SDR) Connectivity: MarketAxess offers connectivity to industry SDRs

Speak with a MarketAxess representative to start trading CDS!