PC-Bond is renaming the PC-Bond family of fixed income indices in recognition of the change of pricing sources from a single dealer to multiple dealers.
The indices will now be known as the DEX fixed income indices. The flagship Scotia Capital universe bond index will now be known as the DEX universe bond index and the other PC-Bond indices will similarly be renamed. There are no changes to index methodology, constituents or criteria for inclusion as a result of this change.
PC-Bond is a subsidiary of TSX Group Inc.
“We are pleased to align the industry leading PC-Bond fixed income index family with the emerging Canadian derivatives DEX name,” says Richard Nesbitt, TSX Group CEO. “When DEX launches in 2009, it will provide a leading platform for derivatives trading, providing maximum flexibility, to our customers.”
Since 1947, there has been a sole price provider for the indices. As of October 1, 10 dealer pricing sources have been added in providing input pricing for the DEX universe bond Index.
“The advent of multi-dealer pricing for the DEX fixed income indices will promote more efficient debt markets in Canada,” says Ian Russell, president and CEO, Investment Industry Association of Canada (IIAC). “The new fixed income indices will result in more accurate pricing, better investment decisions and more effective risk management, and will contribute to greater confidence among market participants.”
“The industry has been asking for a change to multiple contributors and we are proud to be part of this historic change in delivering on the industry’s requirements,” says Robert Fotheringham, TSX Group’s vp of trading, who leads the DEX Derivatives Canada initiative.
With over 1,000 issues and a total market value of over $685 billion, the DEX universe bond index broadly represents the market performance of investment-grade bonds issued by Canadian companies and government sector issuers.
PC-Bond rebrands fixed income indices
New name reflects change from single dealer to multiple dealer index pricing
- By: IE Staff
- October 23, 2007 October 23, 2007
- 07:20