TSX Group Inc.’s wholly owned subsidiary, PC-Bond** is pleased to announce today that in recognition of the change of pricing sources from a single dealer to multiple dealers that the PC-Bond family of fixed income indices will be renamed. The indices will now be known as the DEX Fixed Income Indices™. The flagship Scotia Capital Universe Bond Index will now be known as the DEX Universe Bond Index and the other PC-Bond indices will similarly be renamed. There are no changes to index methodology, constituents or criteria for inclusion as a result of this change.
"We are pleased to align the industry leading PC-Bond fixed income index family with the emerging Canadian Derivatives DEX name.” said Richard Nesbitt, TSX Group CEO. “When DEX launches in 2009, it will provide a leading platform for derivatives trading, providing maximum flexibility, to our customers.”
Since 1947, there has been a sole price provider for the indices. As of October 1, 2007, ten dealer pricing sources have been added in providing input pricing for the DEX Universe Bond Index. As dealer participants, this group will help provide a broad range of fixed income securities pricing to PC-Bond for inclusion into PC-Bond products such as the DEX Universe Bond Index, Canada’s leading fixed income index used by an estimated 95% of buy-side participants, and the recently launched DEX Universe + Maples Bond Index TM.
“The advent of multi-dealer pricing for the DEX Fixed Income Indices will promote more efficient debt markets in Canada, “said Ian Russell, President and CEO, Investment Industry Association of Canada (IIAC). “The new fixed income indices will result in more accurate pricing, better investment decisions and more effective risk management, and will contribute to greater confidence among market participants.”
”We are pleased to be part of the move to a multi-contributor platform for the PC-Bond fixed income index family,” said Robert Fotheringham, TSX Group’s Vice-President of Trading, who leads the DEX Derivatives Canada initiative. “The industry has been asking for a change to multiple contributors and we are proud to be part of this historic change in delivering on the industry’s requirements.”
PC-Bond is Canada's leading provider of fixed income indices. With over 1,000 issues and a total market value of over C$685 billion, the DEX Universe Bond Index broadly represents the market performance of investment-grade bonds issued by Canadian companies and government sector issuers.
DEX Derivatives Canada is a new derivatives exchange to be launched by two of the world’s leading marketplaces, TSX Group and International Securities Exchange. DEX, which is scheduled to begin operation in March 2009, is owned 52% by TSX Group and 48% by ISE and will list and trade options, futures and options on futures on a range of Canadian securities.
All indices summary data and methodology can be found on the PC-Bond web site, at: www.canadianbondindices.com .
* Registered trade mark of The Bank of Nova Scotia. Used under license.
**PC-Bond is registered to 2099242 Ontario Inc., a subsidiary of TSX Group Inc.
