"Clients win when market-makers and index experts join forces to create a pre-eminent, professional solution for their needs," said Andy Brindle, global head of credit derivatives at JPMorgan.
"This open architecture continues to enhance transparency and we believe will further reinforce clients' desire to use this product as the way to express their views in the credit markets," said James O'Brien, co-head of global investment-grade credit at Morgan Stanley.
Reaffirming a commitment to a broad-based market solution in the interest of clients, Dow Jones Indexes will invite recognized credit derivatives market professionals to join in the governance of Dow Jones TRAC-X Indexes. As part of the agreement, Dow Jones Indexes will establish and chair a governance supervisory board to oversee and develop the suite of indexes.
"Dow Jones TRAC-X Indexes is the first CDS index family to combine market-based governance with the oversight of an experienced and independent provider of global indexes," said Lars Hamich, executive director of global business development at Dow Jones Indexes.
Since its April 1 launch, over $100 billion linked to the TRAC-X indexes has traded and 12 TRAC-X indexes have been added to this leading CDS index family. The TRAC-X indexes that have launched to date include: TRAC-X Europe, TRAC-X NA (North America), TRAC-X NA High Yield, TRAC-X Japan, TRAC-X Australia, and TRAC-X EM (Emerging Markets).
Last week, three more firms, Lehman Brothers, Bear Stearns and HSBC, became licensees to sign onto TRAC-X, bringing the total number of market makers to 15 institutions.
