Expands Breadth of Derivatives Data to Help Clients Value Diverse Portfolios FT Interactive Data, an Interactive Data (NYSE: IDC) business and a leading supplier of financial information to global markets, today announced that it will offer seamless access to independent valuations of credit default swap (CDS) index trades, helping clients value their increasingly diverse derivatives portfolios more effectively. According to the International Swaps and Derivatives Association (ISDA), the notional amount of credit default swaps outstanding around the world increased 105 percent to $17.1 trillion from 2004 to 2005. As the size and value of credit derivative portfolios continue to grow and new investors enter the market, many are seeking greater liquidity, convenience and efficiency. Investing in CDS index products can help clients better manage their risk exposure by providing them with a diversified portfolio of CDS in a single transaction. The interest in CDS index products is reflected in data gathered by FitchRatings, which estimates that the growth from 2004 to 2005 was 127 percent for U.S. dollar-denominated CDS index trades and 212 percent for Euro-denominated CDS index trades. FT Interactive Data's new CDS index valuation service, which is now available, facilitates the automated delivery of independent valuations of CDS trades linked to the Dow Jones CDX(TM) and iTraxx(TM) families of indices through an add-on to FT Interactive Data's evaluation services or as a module of its FTS(TM) online portfolio administration service. Valuations for these index trades are based on information that Markit Group Limited ('Markit') gathers from more than 60 major dealers in the CDS markets. The new offering complements FT Interactive Data's previously announced service for the delivery of single-name CDS valuations (http://www.ftinteractivedata.com/news_events/press_releases/ 2006/03/21.shtml). The CDS index valuation service represents another new offering developed through FT Interactive Data's strategic alliance with Markit, a leading provider of independent pricing, reference data, portfolio valuations and OTC derivatives trade processing to the global financial and commodities markets. "We believe that many investors have been increasingly interested in CDS index products because of the range of benefits that they offer, such as increased liquidity and efficiency," said Ray D'Arcy, president of sales, marketing and institutional business development, Interactive Data Corporation. "The new service enables FT Interactive Data to provide clients with a broader set of data to help them more effectively value their credit derivatives portfolios." "By combining the delivery of independent valuations of single name CDS and CDS index trades, FT Interactive Data can offer its clients a more complete set of information about the credit derivatives market," said Mike Rushmore, executive vice president of Markit Group. "We are very pleased with the continued development of our relationship with FT Interactive Data, and believe that our work together will help firms meet their goals more efficiently." The Dow Jones CDX and iTraxx indices, which track segments of the CDS markets around the globe, are valued daily and rebalanced every six months. Markit is the exclusive calculation agent for the Dow Jones CDX and iTraxx indices. Through its alliance with Markit, FT Interactive Data will make both current and historical valuations of CDS trades linked to the Dow Jones CDX and iTraxx indices available to clients. Additional information about these indices is available at www.djindexes.com/mdsidx/?event=cdx and www.itraxx.com. About Interactive Data Corporation Interactive Data Corporation (NYSE: IDC) is a leading global provider of financial market data, analytics and related services to financial institutions, active traders and individual investors. The Company's businesses supply time-sensitive pricing, evaluations, dividend, corporate action and reference data for more than 3.5 million securities traded around the world, including hard-to-value instruments. Many of the world's best-known financial service and software companies subscribe to the Company's services in support of their trading, analysis, portfolio management and valuation activities. Through its businesses, FT Interactive Data, ComStock, CMS BondEdge and eSignal, Interactive Data has approximately 2,200 employees in offices located throughout North America, Europe, Asia and Australia, and is headquartered in Bedford, MA. Pearson plc (NYSE: PSO; LSE:PSON), an international media company, whose businesses include the Financial Times Group, Pearson Education, and the Penguin Group, owns approximately 62 percent of the outstanding common stock of Interactive Data Corporation. FT Interactive Data provides global securities pricing, evaluations, dividend, corporate action and reference data designed to support financial institutions' and investment funds' pricing activities, securities operations, research and portfolio management. FT Interactive Data collects, edits, maintains and delivers data on more than 3.5 million securities, including daily evaluations for approximately 2.5 million fixed income and international equity issues. FT Interactive Data specializes in 'hard-to-value' instruments and 'hard-to-get' information from emerging markets. Evaluated pricing is provided in the U.S. through FT Interactive Data Corporation and internationally through Interactive Data (Europe) Ltd. and Interactive Data (Australia) Pty Ltd. For more information, please visit www.interactivedata.com.
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