Creditex
Acts as an interdealer broker for credit default swaps and bonds.
| Date | Investors | Amount | Round |
|---|---|---|---|
| N/A | €0.0 | round | |
| N/A | €0.0 | round | |
| investor | €0.0 | round | |
N/A | Acquisition | ||
| Total Funding | 000k | ||
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Founded in 1999, Creditex Group Inc. established itself as a key operator in the over-the-counter (OTC) financial markets, providing electronic and voice brokerage services. The firm was co-founded by Sunil Hirani, who served as its CEO. The company pioneered electronic trading for credit default swaps (CDS) in 2004 with its RealTime execution platform, catering to major financial institutions in the U.S., Europe, and Asia.
The company's business revolves around providing an execution and processing platform for credit derivatives. This platform supports a hybrid model of voice and electronic trading for the most liquid segments of the CDS market, including indexes and single-name swaps. Revenue is generated through fees for trade execution and processing services. The company's offerings are designed to increase trading volumes for clients while mitigating operational risks and reducing transaction costs. In addition to its core execution business, Creditex also had subsidiaries like T-Zero, which provided further electronic processing services.
A significant milestone in the company's history was its acquisition by IntercontinentalExchange (ICE) in August 2008 for a total consideration of approximately $625 million in stock and cash. Following the acquisition, Creditex became a wholly-owned subsidiary of ICE, continuing to operate under its own name. This strategic combination aimed to enhance the infrastructure for the OTC markets by pairing ICE's post-trade assets with Creditex's execution platforms. Over the years, the platform has expanded its services, launching ICE Credit Trade in 2015 for electronic trading of investment grade and high-yield corporate bonds. In collaboration with ISDA and Markit (now S&P Global), Creditex also co-administers Credit Event Auctions, a market-standard process for settling credit derivative trades after a credit event.
Keywords: credit default swaps, CDS trading, electronic trading platform, OTC markets, interdealer brokerage, financial services, fixed income trading, corporate bonds, trade execution, trade processing, credit derivatives, derivatives execution, financial technology, IntercontinentalExchange, ICE, Sunil Hirani, T-Zero, credit event auctions, post-trade processing