Markit RED CDS™

Markit RED (Reference Entity Database) CDS is the market standard that confirms the legal relationship between reference entities that trade in the credit default swap market and their associated reference obligations, known as “pairs”. Each entity is identified with a unique 6-digit alphanumeric code, and a 9-digit code identifies the pair. RED codes are widely and successfully used by CDS market participants to electronically match and confirm CDS transactions. The RED “preferred reference obligation” is the default reference obligation for CDS trades based on liquidity criteria.

Markit RED CDS provides confidence with market standard, scrubbed reference entity and obligation pairs:

• More than 3,700 scrubbed reference entity/obligation pairs
• Audited, accurate legal reference entity names
• Proprietary, tried and tested reference data scrubbing process
• Market standard CDX iTraxx and LCDX credit index annexes
• Unique, nine-digit alpha-numeric CLIPS to identify a reference entity / obligation pair
• Complete re-scrubs at least annually or following a corporate event

Industry Integrity

An Advisory Board of leading credit market professionals oversees Markit RED CDS to continually ensure that the service meets the requirements of the subscribers. Markit RED CDS is also actively governed by a user group consisting of a representative from every subscribing firm. The CUSIP Service Bureau, with a long established history in providing unique numbering systems, determines the CLIPS that are assigned to the reference entities and their obligation pairs. Allen & Overy, a leading international law firm, manages the scrubbing process using its large global network. Markit RED CDS is fully integrated with SwapsWire, DTCC, iBoxx and all the major credit brokers.

Why Markit RED CDS?

• RED minimises the operational risk of a mismatch between a reference entity and a reference obligation
• RED is a major factor in the reduction of internal legal and documentation costs, avoiding duplication of legal services across firms
• Over 7,000 unique 6-digit RED code identifiers
• Over 3,700 unique 9-digit RED code identifiers
• Track corporate actions & debt transfers
• Current reference data for the CDX iTraxx and LCDX index families
• Three easy ways to obtain RED data: via the Markit website, XML downloads or via integration into your own in-house trading, risk management, operational and reference data systems

Web-based and XML Data Delivery

The Markit RED CDS data is available via the Markit website from three easy-to-use viewers. Alternatively, you can download RED CDS data in XML and integrate it into  your in-house trading, risk management, operational and reference data systems.

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