PC-Bond reflects change from single dealer to multiple dealer index
TORONTO, Oct. 22 /CNW/ - TSX Group Inc.'s wholly owned subsidiary,
PC-Bond(xx) is pleased to announce today that in recognition of the change of
pricing sources from a single dealer to multiple dealers that the PC-Bond
family of fixed income indices will be renamed. The indices will now be known
as the DEX Fixed Income Indices(TM). 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.
"We are pleased to align the industry leading PC-Bond fixed income index
family with the emerging Canadian Derivatives DEX name," said 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, 2007, ten dealer pricing sources have been added in providing input
pricing for the DEX Universe Bond Index. As dealer participants, this group
will help provide a broad range of fixed income securities pricing to PC-Bond
for inclusion into PC-Bond products such as the DEX Universe Bond Index,
Canada's leading fixed income index used by an estimated 95% of buy-side
participants, and the recently launched DEX Universe + Maples Bond Index(TM).
"The advent of multi-dealer pricing for the DEX Fixed Income Indices will
promote more efficient debt markets in Canada," said 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."
"We are pleased to be part of the move to a multi-contributor platform
for the PC-Bond fixed income index family," said Robert Fotheringham, TSX
Group's Vice-President of Trading, who leads the DEX Derivatives Canada
initiative. "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."
PC-Bond is Canada's leading provider of fixed income indices. With over
1,000 issues and a total market value of over C$685 billion, the DEX Universe
Bond Index broadly represents the market performance of investment-grade bonds
issued by Canadian companies and government sector issuers.
DEX Derivatives Canada is a new derivatives exchange to be launched by
two of the world's leading marketplaces, TSX Group and International
Securities Exchange. DEX, which is scheduled to begin operation in March 2009,
is owned 52% by TSX Group and 48% by ISE and will list and trade options,
futures and options on futures on a range of Canadian securities. All indices
summary data and methodology can be found on the PC-Bond web site, at:
(*) Registered trade mark of The Bank of Nova Scotia. Used under
(xx) PC-Bond is registered to 2099242 Ontario Inc., a subsidiary of TSX
For further information:
For further information: PC-Bond, (416) 947-4772 or email@example.com