Markit today announced that it is working with a broad group of dealers on documentation for a European residential mortgage-backed index. The ERMBX.UK is designed to reference synthetic U.K. prime mortgage-backed securities. Markit is the owner of the widely traded iTraxx and CDX credit derivative indices and the synthetic structured finance and loan indices ABX.HE, CMBX, LCDX and LevX.
Following extensive feedback from all market participants, and in light of the current volatile market conditions, it has been agreed that any decision regarding the launch of the new index will be made at a later date.
Ben Logan, managing director of Structured Finance at Markit, said: "It is Markit’s desire to create an index that will attract market support and be actively traded. We will continue to work towards completing the documentation for the index, and will update the market on any decisions that are taken about the launch in due course."