Markit being probed by Justice regarding credit default swaps

Trading information services company Markit Group Ltd., said today it is being investigated by the U.S. Justice Department in relation to the market for credit default swaps.

“Markit has been informed of an investigation by the Department of Justice into the credit-derivatives and related markets,” spokeswoman Teresa Chick said in an e-mailed statement from New York.

“We will work with the Department to provide any information requested of us.”

Markit owns the benchmark credit derivative indexes in the U.S. and Europe.

Credit default swaps are contracts that protect against corporate defaults by paying the buyer the face value of a bond or loan if a company fails to meet its debt agreements.

A Justice Department spokeswoman did not immediately return a call seeking comment.