Markit to launch first tradable emerging markets interest rate swap index
Emerging markets interest rate swap index iRxx.EM will start trading on March 2nd 2016
Markit (Nasdaq: MRKT), a leading global provider of financial information services, today announced that it will launch iRxx.EM, a tradable emerging markets interest rate swap index, which commences trading on March 2nd 2016.
Emerging market local currency bond issuance has grown rapidly, with outstanding debt increasing five-fold over the past ten years. Parallel growth in the trading of interest rate derivatives has left the market ripe for a new index to allow investors to take an index-level position to trade emerging markets interest rate risk.
The Markit Interest Rate Swap Emerging Market Index (iRxx.EM) provides investors with an innovative way to gain or hedge global emerging markets interest rate exposure in a single trade.
Adam Kansler, co-head of Information at Markit, said: “Markit has a proven track record launching and administering innovative tradable indices. We are excited to provide our customers with the first independent and transparent tradable index to capture a macro view of interest rate risk in emerging markets.”
iRxx.EM is composed of liquid emerging markets interest rate swap contracts. Markit will publish daily theoretical valuations for the index. The calculation methodology is provided by Markit’s Portfolio Valuations service.
Markit is a global index provider with coverage that includes equities, fixed income and macroeconomics. We leverage more than ten years of experience in designing, administering and calculating indices across OTC and exchange-listed asset classes.