Intercontinental Exchange (ICE) has launched a new trading platform for cleared single-name credit default swaps (CDS), in a bid to revive trading in a once robust market.
The platform, named ICE Swap, allows trading in single-name CDS via a central limit order book (CLOB), and will integrate the remaining clientele from Creditex, ICE’s inter-dealer broker for CDS and bonds.
According to a release from ICE, it is the first platform to include both anonymous and “name give up” execution in the same order book, allowing buy- and sell-side users to choose whether to reveal their identity after the trade.
“ICE Swap is the only single name CDS platform offering cleared-only liquidity across the credit spectrum while extending established electronic trading protocols to the entire CDS market,” said Krishan Singh, president of ICE Swap Trade.
“We’re pleased that a number of trades have already been executed by both the sell-side and buy-side in the first few days post launch.”
ICE began efforts to launch a buy-side centric anonymous trading platform in the single-name CDS market last year, as first reported by Reuters, with the belief that an exchange-like platform for trading bilateral contracts will open the doors for new liquidity providers.
Interest in the single-name CDS market has dwindled in recent years due to the bad reputation it gained after the financial crisis.