CreditTrade and Totem Launch Joint Venture to Provide Consensus Based Mark-to-Market Credit Derivatives Service.Business Editors NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and LONDON--(BUSINESS WIRE)--Aug. 5, 2002 CreditTrade, a leading provider of transaction, data and information services See Information Systems. to the credit markets, today announced it has signed an agreement with Totem Market Valuations Ltd, the valuations clearing house, to launch a joint venture called Credit Accord. Credit Accord will provide a consensus based mark-to-market credit derivatives Credit Derivative Privately held negotiable bilateral contracts that allow users to manage their exposure to credit risk. Credit derivatives are financial assets like forward contracts, swaps, and options for which the price is driven by the credit risk of economic agents (private service for participating banks. The service will involve regular collection of credit derivatives data from participating institutions, which will then be made anonymous, aggregated and validated. The validation See validate. validation - The stage in the software life-cycle at the end of the development process where software is evaluated to ensure that it complies with the requirements. will involve the calculation of average prices and comparisons of individual contributor prices with these averages. In addition, prices will also be compared with CreditTrade data. The aggregated and validated data, the mark-to-market service, will then be provided to participating institutions. Commenting on the deal, Krishna Biltoo, Head of Product Development at CreditTrade and responsible for data sales said: "The launch of Credit Accord is an important landmark for us and by joining forces with Totem we are creating a strong offering for the market. This new joint venture will also help to bring more transparency (1) The quality of being able to see through a material. The terms transparency and translucency are often used synonymously; however, transparent would technically mean "seeing through clear glass," while translucent would mean "seeing through frosted glass." See alpha blending. to the credit derivatives marketplace by bringing valid aggregated data to institutions." James Prichard, Director, Totem Market Valuations Ltd said: "Credit Accord is special because it combines Totem's experience in consensus revaluation Revaluation A calculated adjustment to a country's official exchange rate relative to a chosen baseline. The baseline can be anything from wage rates to the price of gold to a foreign currency. In a fixed exchange rate regime, only a decision by a country's government (i.e. for middle-offices with a window on the live credit market from CreditTrade. Credit Accord clients can ask the questions they need to resolve mark to market issues without giving away their positions or their identity." Under the terms of the joint venture CreditTrade will supply pricing data for validation of Credit Accord data, as well as consultation and IT support. Totem will supply operational infrastructure, data collection and the administration of the service. Both companies will work together on marketing and branding and general management of Credit Accord. CreditTrade Company Overview CreditTrade provides transaction services: bringing together buyers and sellers of credit quickly and efficiently. Our product range covers the credit markets: derivatives, cash and structured trades. We have offices in London, Singapore and New York. As a data and information service provider, CreditTrade offers a range of products including CreditTrade Benchmarks and Market Prices. CreditTrade pioneered the introduction of electronic trading  This article or section is in need of attention from an expert on the subject.Please help recruit one or [ improve this article] yourself. See the talk page for details. and price distribution services in the credit markets. CreditTrade -- providing transaction, data and information services to the credit markets. Totem Market Valuations Ltd Company Overview Totem provides security houses and banks with a source of regular consensus prices/parameters for a wide range of OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). and listed instruments. Established in 1997 by experienced market professional, the company operates in association with PricewaterhouseCoopers (PwC) and supplies over 20 of the premier investment banking houses with monthly data on markets in Europe, Asia & North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . Totem Market Valuations Company Overview -- the leading valuations clearing house. |
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