US financial services firm Markit is launching a tradable emerging markets interest rate swap index.

Dubbed iRxx.EM, the index will begin trading in March and provide pension funds, asset managers and hedge funds with a way to gain or hedge global emerging markets interest rate exposure in a single trade. 

Emerging market local currency bond issuance has grown rapidly, Markit data shows, with outstanding debt increasing five-fold over the past ten years.

Meanwhile, the company says growth in the trading of interest rate derivatives has "left the market ripe" for a new index to allow investors to take an index-level position to trade emerging markets interest rate risk.

“We are excited to provide our customers with the first independent and transparent tradable index to capture a macro view of interest rate risk in emerging markets,” said Adam Kansler, co-head of information at Markit.

iRxx.EM will consist of derivatives including interest rate swaps, cross currency swaps and overnight index swaps.

The series covers 15 nations, including India, Malaysia, South Korea, China, Thailand in Asia.

Russia, South Africa, Turkey, Hungary, Israel, Poland make up EMEA while Latin American countries include Brazil, Columbia, Mexico, Chile.