Electronic credit platform MarketAxess has expanded the MarketAxess Trade Crossing Hub (MATCH) to include a wider range of participants to trade single name credit default swaps (CDS) anonymously.
MATCH is a central limit order book (CLOB) offering all-to-all trading in single name CDS products that the firm launched earlier this year. In a statement, the firm said Barclays would provide liquidity as a designated market maker on the platform.
The CLOB model lets participants send and receive anonymous orders. This model is expected to gain popularity for swaps trading as institutional investors begin to shift to a price maker role in instruments other than equities, where the practice is already well established.
MarketAxess also operates a swap execution facility (SEF) that will provide execution in CDS instruments, most notably highly liquid index products.
“We believe that a centralised all-to-all marketplace, offering a variety of trading protocols, is an effective way to increase overall credit market liquidity,” Kevin McPherson, head of US sales at MarketAxess, said.
“Alongside our SEF for CDS index trading, MATCH will help to further increase transparency and broaden participation in the CDS market,” he said.
MATCH offers real-time matching logic for trade execution and trade details can be delivered via straight-through-processing.