First CDS index Products to combine broad market governance with oversight of an independent index expert
New York and London (Oct. 20, 2003) — JPMorgan and Morgan Stanley announced today that they have selected Dow Jones Indexes‚ a world-leader in index calculation and management‚ to lead the future development of TRAC-X‚ the market-leading global suite of credit default swap (”CDS”) index products that was formed in April 2003. Dow Jones Indexes will assume responsibility for maintaining and marketing the indexes‚ which will be renamed the “Dow Jones TRAC-X Indexes.”
“Clients win when market-makers and index experts join forces to create a pre-eminent‚ professional solution for their needs‚” said Andy Brindle‚ global head of credit derivatives at JPMorgan.
“This open architecture continues to enhance transparency and we believe will further reinforce our clients’ desire to use this product as the way to express their views in the credit markets‚” said James O’Brien‚ co-head of global investment-grade credit at Morgan Stanley.
Reaffirming a commitment to a broad-based market solution in the interest of clients‚ Dow Jones Indexes will invite recognized credit derivatives market professionals to join in the governance of Dow Jones TRAC-X Indexes. As part of the agreement‚ Dow Jones Indexes will establish and chair a governance supervisory board to oversee and develop the suite of indexes.
“Dow Jones TRAC-X Indexes is the first CDS index family to combine market-based governance with the oversight of an experienced and independent provider of global indexes‚” said Lars Hamich‚ executive director of global business development at Dow Jones Indexes.
Since its April 1 launch‚ over $100 billion linked to the TRAC-X indexes has traded and 12 TRAC-X indexes have been added to this leading CDS index family. The TRAC-X indexes that have launched to date include: TRAC-X Europe‚ TRAC-X NA (North America)‚ TRAC-X NA High Yield‚ TRAC-X Japan‚ TRAC-X Australia‚ and TRAC-X EM (Emerging Markets).
Last week‚ three more firms‚ Lehman Brothers‚ Bear Stearns and HSBC‚ became licensees to sign onto TRAC-X‚ bringing the total number of market makers to 15 institutions.
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Note to editors:
J.P. Morgan Chase & Co.is a leading global financial services firm with assets of $803 billion and operations in more than 50 countries. The firm is a leader in investment banking‚ financial services for consumers and businesses‚ financial transaction processing‚ investment management‚ private banking and private equity. A component of the Dow Jones Industrial Average‚ JPMorgan Chase is headquartered in New York and serves more than 30 million consumer customers and many of the world’s most prominent corporate‚ institutional and government clients. Information about JPMorgan Chase is available on the internet at www.jpmorganchase.com.
Morgan Stanley is a global financial services firm and a market leader in securities‚ investment management and credit services. With more than 700 offices in 28 countries‚ Morgan Stanley connects people‚ ideas and capital to help clients achieve their financial aspirations.
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