Markit MCDX
Markit owns, markets, administers and calculates the credit index referencing municipal single name CDS, Markit MCDX.
Product summary:

The Markit MCDX index has these primary characteristics: Reference Entities (50 equally-weighted reference entities), Reference Obligations, Ratings (specific ratings included in the index), Credit Events (Failure to pay; Restructuring), Recovery Rate assumptions (for upfront and unwind calculation), Roll Dates (3rd April, 3rd October), Tenor (3, 5, 10 years) and Quotation Standard (basis points).

Key benefits:
Trading efficiency - Participants can trade large sizes quickly and confirm all trades electronically
Liquidity - Wide dealer and industry support allow for significant liquidity in all market conditions
Market acceptance - Markit CDX indices are accepted as a key benchmark of the overall market credit risk
Standardization - All characteristics are standard and documented leaving no room for interpretation
Transparency - Pricing is freely available daily on all indices
Key functions:
Exposure to municipal credits - Participants can easily gain exposure to a diversified portfolio of municipal credits
Hedge credit risk of cash positions - Indices are an efficient liquid method to hedge a portfolio's credit risk via a transparent and standardized basket
Enhance liquidity in the single name market - The liquidity of the index flows into the single name CDS market
Related Links
Credit Fixings
Index Documents
Index Annex
Confirmations
Index Annex Archives
Confirmations Archives
Primers
Settled Entity Matrix
For more information about Markit, please contact us at any of our regional offices
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