Ubitrade Launches CDS Module

Ubitrade, a leading supplier of advanced system solutions for the finance
industry today announces that Tradix module supporting Credit Default Swaps(CDS) is now available. Tradix is Ubitrade's trading, operations and risk
management system.

The CDS market is expanding rapidly. Before the end of the decade, the CDS
market should be as developed as the IRS market. Some of our clients say
that they already trade two to three times more CDS in notional value than
spread bonds. One reason for this is the CDS' much higher liquidity.

Tradix covers standard default swaps and credit default swaps on a single
or a basket of issuers. The following features are available:
- The system provides a pricing screen using state-of-the-art pricing
methods, including standard models such as JP Morgan and pricing models
dedicated to the CDS basket (Hull & White and Copulas).
- The system offers a user-friendly market data capture (recovery rates, default rate curves, default swap curves, correlation,). Moreover, all the managed data can be linked to external real-time data feed in order to provide users with real-time pricing, P&L and risk functions.
- The deal capture of the default swaps is in conformity with the ISDA
(International Swaps & Derivatives Association) standards. In the case of default, three types of payment can be defined: physical, cash or predetermined.
- Event management: to cover all the inherent risks in a default procedure,
Tradix proposes a default procedure seizure with extensive flexibility.

Adel Torjmen, Head of the Tradix business unit, Ubitrade, commented:
"Credit derivatives allow an efficient reduction in counterparty risk. As a
consequence, the market has quickly expanded over the last few years,
encouraged by the deterioration of private companies' default rates and the
willingness to hedge credit risk. A strong and reliable system is necessary
to successfully support and develop activities on this market.''

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