Data, portfolio valuations and OTC derivatives trade processing vendor Markit has released a new license for its Reference Entity Database (RED) aimed at smaller buy side firms.
Under the terms of the new license, asset managers with low credit default swap (CDS) trading volumes that use DTCC Deriv/SERV for trade confirmation will gain access to RED.
This is part of the vendor’s attempts to reach more participants in the OTC derivatives market and supports the commitments made by the Operations Management Group (OMG) to the New York Fed in March this year to improve OTC derivative trade processing.
“We are keen to encourage the broad buy side community to adopt RED,” says Ed Chidsey, director of Markit RED. “We recognise that one size doesn’t fit all and have now developed a new licence for the smaller firms.”
Markit RED is the industry standard for reference entity and reference obligation identifiers used throughout the CDS market to reduce legal and operational risk in trading, documentation and trade settlement. The service uses legal representatives in over 100 countries to source and scrutinise all relevant documentation to provide subscribers with an understanding of each entity.
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