MARKIT TO LAUNCH NOVATION CONSENT SERVICE FOR CREDIT DERIVATIVES IN AUGUST

Posted June 4, 2008

NEW YORK – Independent data, portfolio valuation, and OTC derivatives trade- processing provider Markit plans to launch a new electronic novation consent service for its clients in the credit derivatives market in August.

The new service will support commitments made by the Operations Management Group, a senior industry leadership group, to the Federal Reserve Bank of New York in March. The new service will link Markit Trade Manager, a cross-asset class trade workflow and reporting service serving buy-side firms, with the Depository Trust & Clearing Corporation (DTCC).

“Markit’s electronic solutions for novations and allocations will enable PIMCO to achieve operational efficiency and mitigate risk quickly and efficiently across the major OTC derivative asset classes,” says Ric Okun, Senior Vice President at PIMCO.

The new service complements the existing Markit Wire novation service for the interest-rate and equity derivative markets. Markit Trade Manager sent more than 50,000 client trades to DTCC for confirmation in April, a new monthly record. In the first four months of 2008, Markit processed almost 10 times the number of interest-rate derivative novations as it did during the same time a year before.