Markit iTraxx SovX CEEMEA Index To Start Trading


Markit, announced that the Markit iTraxx SovX CEEMEA index will start trading on

20 January 2010.

The index, which forms part of the Markit iTraxx SovX family of sovereign credit default swap indices, will provide market participants with a standardised tool to hedge or gain exposure to the risk of 15 countries in Central and Eastern Europe, Middle East and Africa.  The 15 countries represented in the index have a combined total outstanding CDS notional of USD 530bn.


Stephan Flagel, Managing Director and Head of Indices at Markit, said: “The sovereign CDS asset class continues to gain in importance amid growing concern over countries’ debt levels.  We expect this new tradable index will increase transparency and liquidity in the CEEMEA sovereign credit markets.  The index will allow market participants to gain or hedge exposure to sovereign risk on a diversified basis and will be a useful tool to track investor perception of the credit risk of CEEMEA countries.”


The new index will replace the existing theoretical index and start trading as Version 2 of Series 2 with more than 10 market makers.


Markit launched the Markit iTraxx SovX indices in July 2009 to meet investor demand for an independent, transparent and standardised tool to monitor the sovereign CDS market and gain access to the asset class on a regional and global basis.   The first index of this family to be traded was the Markit iTraxx SovX Western Europe index.

Source: ETFWorld – Markit


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