JP Morgan Chase and Morgan Stanley have finalised the geographical scope of their credit default swap index product family, Trac-X, by launching Trac-X Emerging Markets.

Similar to the two banks other Trac-X indices, Trac-X Emerging Markets is a tradeable portfolio of five-year credit default swaps, referencing a diversified, liquid pool of emerging market sovereign credits. The index replaces JP Morgan's Emerging Markets Derivative Index which launched in May this year based on the 1999 ISDA credit derivative definitions.