New York, London - 26th June - Reuters (Nasdaq: RTRSY, LSE: RTR), the global information company, and GFI Group Inc. ("GFI"), a brokerage, market data and analytical software provider, today announced an agreement to make the number one* credit derivative broker's independent credit default swap data and GFI's FENICS Credit pricing tools available to the wider market through Reuters 3000 Xtra, Reuters Bridgestation, Reuters Trader and Reuters NACAP (North American Capital Markets).
The deal marks the first time banks, corporates, insurers and hedge funds will have such wide scale access to intraday, transparent, trusted and independent credit default swap prices. Access to this data and analytics is crucial to new and existing credit derivative market participants and valuable to any equity or bond investor wishing to check the markets' assessment of a company's credit quality.
Under this exclusive agreement:
* A GFI credit reference page will be freely accessible to subscribers of Reuters desktop products and lists five year CDS levels for a series of credit entities globally, selected to cover a range of sectors and regions, in addition to the 'most actives', 'newly actives' and 'biggest movers' of the day
* Reuters will offer a GFI credit derivative optional package providing access to prices and trade data from GFI's full database of 1,800 reference entities supplemented by independently generated curves from FENICS Credit, the new benchmark in pricing and managing credit derivatives, developed in participation with Professors John Hull and Alan White
* Both the GFI Credit Portal, its complete web-based service that offers access to its credit market databases and information on changing credit quality and GFI's FENICS Credit calculator, will be available through Reuters 3000 Xtra and Reuters BridgeStation terminals
Michael Gooch, Chief Executive Officer, GFI said: "The growth and stability of the credit derivatives market depends on the ability of all market participants to know their credit exposure at any time. The widespread availability of GFI's independent, trusted and traded credit default swap data, combined with its FENICS Credit pricing tools, makes this possible. In addition, since the credit default swap market is viewed as one of the most sensitive measures of how market participants view corporate prospects, these instruments, and therefore the data, have enormous value as a leading indicator for the bond and equity markets. With its distribution capabilities in fixed income, equity and currency markets, Reuters is the ideal partner for GFI to create the benchmark for credit derivative price discovery."
Julie Holland, Managing Director, Reuters Treasury Services said: "World class information is at the heart of Reuters strategy. This agreement with GFI will provide Reuters customers with highly sought after credit default swap market data and analytics capabilities to further strengthen our existing fixed income offerings. Reuters is committed to continually improving the fixed income content coverage and trading capabilities within its products to become the most valued cross market platform in the industry with wide reach in the equity and debt markets."