A&O Launches CDS Tool to Bring Clarity to Bond Deliverability

Allen & Overy LLP today announced the launch of CDS deliverability, a tool that will offer the CDS market an indicator of deliverability for the growing universe of frequently traded reference obligations.

The online service will bring greater transparency and efficiency to the credit derivatives markets by providing rigorous legal analysis of deliverability made available in a one-page report for each obligation. Historically market participants have conducted this analysis on a unilateral basis, duplicating effort and cost without the benefit of a recognised market standard.

CDS deliverability has been developed in association with Markit, the leading provider of independent data, portfolio valuations and OTC derivatives trade processing to the global financial markets. Mutual clients of Markit RED and CDS deliverability will be able to access deliverability reports directly through the Markit website.

Simon Haddock, head of Allen & Overy's Derivatives and Structured Finance practice said: "Quick and efficient mechanisms for delivery of both legal and market data are an integral part of the commoditisation of the credit markets. The market has long sought a cost-effective and timely indicator of deliverability for frequently traded obligations. CDS deliverability has been produced to satisfy that demand based on feedback from a number of leading dealers in the credit markets."

"The launch of CDS deliverability is a welcome next-step in the move towards greater legal and operational efficiency in the credit derivative markets, and we are pleased to have partnered with Allen & Overy in this initiative. The CDS deliverability tool will provide our clients with valuable information that will add clarity and confidence to CDS trading”, added Ed Chidsey, Director of Markit RED.

CDS deliverability covers the iTraxx Europe index series 7 and 8 at present, and will include future rolls to this index. The product will be expanded to cover the weekly rolls to the Markit Preferred Reference Obligations list shortly.

CDS deliverability is the latest addition to the suite of products offered by Allen & Overy LLP's affiliates, including the award winning netalytics and CSAnalytics, which are used by over 65% of leading derivative dealers and brokers, and the recently launched pre-insolvency enforceability resource, diligence.

For further information, please contact Marc-Henri Chamay, marc-henri.chamay@allenovery.com, at Allen & Overy LLP in London on +44 (0)20 3088 3955 or Caroline Lumley, caroline.lumley@markit.com, at Markit in London on +44 (0)20 7260 2047.

Notes to editors

www.allenovery.com

1. CDS deliverability is a service provided by Spitalfields Projects LLP, an affiliate of Allen & Overy LLP.

2. Markit is the leading provider of independent data, portfolio valuations and OTC derivatives trade processing to the global financial markets. Markit RED is the industry standard for reference entity and reference obligation identifiers used throughout the credit default swap markets, including on-line trading, standard documentation and trade settlement. Markit RED subscribers can access CDS deliverability directly on www.markit.com.

3. With more than 250 qualified lawyers advising on derivative products globally, Allen & Overy's derivatives and structured finance group is widely regarded as the largest and most integrated derivatives team in the industry. The firm was named Derivatives Law Firm of the Year at 2005 and 2006 DEAL Awards, hosted by Derivatives Week, and is the only firm to achieve standalone top tier rankings across the three leading legal directories, Chambers & Partners, Legal 500 and IFLR 1000.

4. Allen & Overy is an international legal practice with approximately 5,000 staff, including over 470 partners, working in 24 major centres worldwide.

5. In this press release 'Allen & Overy' and 'A&O' means Allen & Overy LLP and/or its affiliated undertakings.

6. The term 'partner’ is used to refer to a member of Allen & Overy LLP or an employee or consultant with equivalent standing and qualifications or an individual with equivalent status in one of Allen & Overy LLP’s affiliated undertakings.