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CDS Market: Greater Access to More Trade Data & Metrics Aims to Boost Transparency

By Tim Lind, Managing Director of DTCC Data Services | 2 minute read | August 18, 2021

In a Q&A with DerivSource, Tim Lind, Managing Director of DTCC Data Services, shares an update on the recently enhanced CDS Kinetics Platform from The Depository Trust & Clearing Corp (DTCC), which aims to increase transparency into the Credit Default Swaps Market through the provision of data and metrics on notional outstanding, net notional and trading volumes as well as analytical functionality.

DS: The new CDS Kinetics platform sources the data on the credit default swaps market from the DTCC’s Trade Information Warehouse (TIW) to provide to market participants. Can you firstly tell us briefly what data is provided from the platform?

TL: CDS Kinetics offers access to the largest consolidated set of global credit default swap (CDS) data, providing an in-depth understanding of liquidity and transparency of CDS on indexes, corporates, sovereign, tranches, agencies, municipal, and loans. The service offers weekly stock and volume reports including detail on global CDS contract activity as well as historical data.

DS: What was the catalyst or motivation to launch this platform now? Was the market volatility experienced in March 2020 a catalyst, for instance?

TL: The CDS Kinetics service was initially launched in 2017 and now has been enhanced to deliver new insights into notional outstanding, net notional and trading volume metrics along with enhanced analytics and user interface capabilities. The unique insights the platform offers on credit risk will not only inform trading strategies but will also help banks better prepare for potential market dislocations. Now more than ever, it’s critical for firms to begin drawing upon more robust and higher-quality data sources to heighten their risk preparedness and response, as well as their overall business resilience.

DS: In addition to individual market participants and firms, is there a market-wide benefit from having access to this data and thus the transparency into the market that it provides?

TL: There are benefits of generating this data for the wider industry. Corporations, insurance companies, academic institutions, fintech providers and regulators are all users who can analyze this data for a variety of different use cases, including credit analysis and for sentiment models as it relates to specific issuers.

DS: How will derivatives market participants utilize this data to better mitigate market and credit risks and inform trading strategies? Examples would be great.

TL: Market participants use this data as an input into fundamental analysis, systematic trading, correlation trading, macroeconomic research, and transparency into the liquidity of CDS positions in indexes, corps, sovereign, tranches, agencies, municipal, and loans.

DS: How will users access this new platform?

TL: Clients can discover more about CDS Kinetics data by visiting Clients can also access the service via a number of delivery options including SFTP, API and an enhanced web portal.

DS: Is this platform live now for all to use?

TL: Yes. The platform is live with participation from both buy-side and sell-side firms.

This article first appeared in DerivSource August 5, 2021.

Tim Lind, Managing Director, Data Services
Tim Lind DTCC Managing Director, Data Services

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