Markit Responds To Allegations Of CDS Pricing Collusion

Tyler Durden's picture

Earlier we observed the long-overdue (noted first here in March of 2009) allegations that Markit among any others may be involved in a massive CDS pricing collusion scheme. Now it is Markit's turn to provide its side of the story.

Markit Statement on European Commission CDS Inquiry

Markit is aware of the European Commission’s statement that it will open investigations relating to the Credit Default Swaps information and clearing markets.  Markit has no exclusive arrangements with any data provider and makes its data and related products widely available to global market participants.  Markit has created new and innovative products and services in a competitive marketplace since its inception, bringing greater transparency and information to the CDS market.  Markit is unaware of any collusion by other market participants as described by the Commission.  Markit does not believe it has engaged in any inappropriate conduct and looks forward to demonstrating that to the Commission.

Of course, this does sound much more diplomatically correct than this hypothetical example: "Markit is indeed owned by many of the 16 banks referenced in the charges, and confirms that it has in fact colluded with its owners to provide them with unfair pricing benefits and advantages." The latter version would surely be ludicrous.