Markit plans Asia Pacific index to track sovereign CDS markets, risk

By Susanna Moon

Chicago, April 9 - Markit Group Ltd. said it plans to launch the Markit iTraxx SovX Asia Pacific index, which tracks investor perceptions of the credit risk in the Asia Pacific region.

Markit said the initial series of the index will include the following constituents: Australia, China, Indonesia, Japan, Korea, Malaysia, New Zealand, Philippines, Thailand and Vietnam.

The iTraxx SovX Asia Pacific index will start trading in early May.

The index forms part of the Markit iTraxx SovX family of credit default swap indexes and will be a barometer of the sovereign credit default swap markets in the Asia Pacific region, according to a press release.

The index will also provide market participants with a standardized tool to hedge their exposure to the risk of the 10 countries with the most liquid sovereign CDS in the region.

The Asia Pacific index will start trading as version 1 of series 3 for consistency with other Markit iTraxx SovX indexes. More than 10 market makers, including international and local financial institutions, are expected to provide liquidity for this index, Market said.

Markit said it will continue to apply its objective, rules-based approach to index construction and publish index rules and daily closing prices on markit.com.

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