Markit CDS Liquidity
Markit CDS Liquidity supports client requirements for independent measures of liquidity, both through the provision of individual metrics and calculated liquidity scores.
Product summary:

CDS Liquidity has become an increasingly hot topic in recent years with regulators, accountants, investors, risk managers, trading desks and internal management focusing on the ability to measure the liquidity associated with CDS positions. Market liquidity, the ability of market participants to buy or sell a specific position at a minimal price impact, is one critical measure of liquidity.

Markit CDS Liquidity provides market participants with an independent set of CDS liquidity measures, including an easy to understand and transparent liquidity score. Available as an enhanced add-on to clients of Markit's end of day CDS service, it leverages access to the broadest CDS data set available.

Metrics include:

- Bid / ask spread data
- Market depth using both intra-day dealer runs and end-of-day contributions
- Estimated notional size of standard trades
- Liquidity scores

Through the combination of individual metrics, scores and transparency into the methodology used, Markit CDS Liquidity provides objective liquidity information that market participants can use with confidence.
Key benefits:
Independence: The liquidity data is consensus based and available from a recognised independent source
Breadth of content: Combining inputs from Markit's end of day composite calculations with quotes sourced from dealer runs, Markit provides a uniquely rich set of content
Multi-purpose: In addition to liquidity measurement, the bid / ask spread can also be used for mark-to-exit purposes
Transparency: The liquidity score methodology is transparent and clearly documented, with visibility provided on the individual inputs
Flexibility: Use the individual metrics to arrive at your own view of liquidity or use the calculated score as an independent view
Key functions:
Coverage: Data provided on Markit's end of day CDS universe
Timeliness: Data produced on a daily basis
Accessibility: Reports available in CSV, Tab and XML formats, either through automated download or through Markit’s desktop solutions
Support: Direct access to Markit analysts for data queries and price challenges
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