June 7, 2024 (NO COMMENTS)

Dealer worries about impact of self-referencing trades derail CDX Financials launch at last minute

 

S&P Global-owned IHS Markit has postponed the launch of a new credit default swap (CDS) index days before it was set to start trading after dealers raised concerns that regulatory capital rules would keep them from using the product. In a statement on Friday, May 31, the index’s administrator wrote that CDX Financials – the highly anticipated index of banks and insurance companies – would not begin trading on Monday, June 3 as planned, citing “regulatory concerns raised by multiple market-makers”