Credit Derivative Transactions

This Issue in United States

Markit Red (reference Entity Database)

Concept of Markit Red (reference Entity Database) in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A market standard reference entity database providing critical reference data used to document and confirm credit derivative (i.e. an instrument that transfers risk from one party to the other) transactions. Markit RED™legally verifies the relationship between reference entities and reference obligations which trade in the CDS market, known as pairs. The most liquid reference obligations are flagged as the market standard RED ‘preferred’ and are widely used for electronic trading, matching and clearing. Markit RED™ has been further developed to support the growth in trading LCDS by providing transparent reference data. Markit RED™ verifies the reference entities, credit agreements and loan facilities used as reference obligations in the LCDS market.

Resources

See Also

• Derivatives Contract