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  • Bloomberg Launches First Daily China Credit Derivatives Pricing

    Published on November 16, 2010

    China: Bloomberg Professional executives today announced the launch of the first daily reference prices for the Chinese Renminbi credit derivatives market. The new service is designed to reduce risk and increase transparency. The Bloomberg proprietary tool, developed in cooperation with major Chinese banks, provides accurate pricing for risk assessments on credit derivatives, which help with market-to-market valuations.

    Bloomberg’s Credit Risk Mitigation Instrument Fixing (CRMC) tool provides current market information on CNY credit risk mitigation instrument fixing, as well as individual bank’s credit risk mitigation instrument data. CRMC is a reference price calculated from prices quoted on a particular tenor and credit rating, from twelve of the largest dealers in China. Their prices are averaged after removing the highest and lowest quotes. The data is collected at 4:00 p.m. Beijing-time daily.

    “Prices for credit risk mitigation instruments calculated by Bloomberg, is important for every bank. China Development Bank needs to use prices provided by Bloomberg’s CRMC service daily to mark to market positions on CRMI”, says Sun Shixin, Department Head, Risk-Management Department, China Development Bank.

    “As the first Chinese credit enhancement institution and the leading market maker, China Bond Insurance (CBIC) focuses on developing the credit derivative market in China. Bloomberg’s “Information and Quotes” platform for Credit Risk Mitigation Instruments is very useful to us. We believe the cooperation between Bloomberg and CBIC will greatly improve the market efficiency for credit products in China,” says Xuebing Ding, Chief Investment Officer of CBIC.

    “Bloomberg worked closely with the leading banks in China to create the daily reference pricing service. By bringing transparency to a new and complex market place, the data we provide helps financial market participants better manage their risk and more effectively hedge their credit exposure,” says Gerard Francis, Head of Emerging Markets, Bloomberg.

    The Chinese Risk Mitigation Instruments, a form of credit derivatives for the Renminbi bond market, began trading earlier this month. Bloomberg began providing the CRMI price contributions from the key banks and the daily reference pricing on the 5th of November, 2010, the first day of trading.

    The Bloomberg Professional® service delivers reliable access to the latest market data, financial news, and economic information critical to the investment decision process.

    For more information about Bloomberg Professional service, please contact Olivia Sun at +86 139 1691 5266 or call Bloomberg’s 24/7 customer service at +86 10 6649 7500.