New York-based GFI Group Inc. (GFI) has launched CreditMatch, an electronic trading platform for credit derivatives.
GFI is an inter-dealer broker and data and analytical software provider to the derivatives market. In the first phase of the roll-out of CreditMatch, dealers are able to trade credit default swaps on European banking and insurance names electronically. GFI intends to extend CreditMatch to other sectors according to customer demand.
GFI stated: "CreditMatch is consistent with the company's hybrid brokerage model, allowing dealers to choose between trading entirely on screen or over the phone through GFI's award winning brokerage desks."
CreditMatch has been installed on trader desks in North America, Europe and Asia. Among banks already live are Barclays Capital, Deutsche Bank, Goldman Sachs, HSBC, JP Morgan Chase, Lehman Brothers, Merrill Lynch and Société Générale. The first electronic trade, on a European insurance name, was executed between Lehman Brothers London and Barclays Capital London.
GFI expects the launch of CreditMatch to be very positive for market transparency and liquidity. Recognised as the top credit derivatives broker* and successful in running electronic trading platforms in other derivatives markets, GFI offers the wholesale credit market an extensive indication of market sentiment and activity combined with superior execution services.
Michael Gooch, CEO and Founder, GFI said: "The industry continues to look to GFI to enhance liquidity in credit derivatives and electronic trading is seen as the next important step to support the growth of this market. The incredible response we have seen from major dealers is testament to this."
In addition to credit derivatives, GFI has strategically deployed hybrid electronic trading technology in 25 of the 70 markets that it serves, including currency derivatives, repo, European and UK energy markets, freight derivatives, emissions and North American and European weather.
Background Note: GFI is an inter-dealer brokerage, market data and analytical software provider for global cash & derivative markets. Specialising in complex, often new and fast-growing financial and commodity markets, GFI combines a hybrid electronic and voice assisted trade execution platform with pre- and post-trade products such as real-time and historical market data and analytical software. Headquartered in New York, GFI was founded in 1987 and employs more than 650 people with additional offices in London, Hong Kong, Tokyo, Singapore and Sydney. GFI serves over 1,500 clients including the leading banks, broker-dealers, trading houses, funds, insurance and energy companies. Its brands include GFI, GFInet and FENICS.