IntercontinentalExchange's Creditex subsidiary and Markit will conduct a Credit Event Auction to facilitate settlement of credit default swaps (CDS) trades on Sino-Forest Corp. on May 9, 2012. This will be the first credit event auction conducted to settle CDS trades outside of North America, Europe and Japan.
Earlier this year, the International Swaps and Derivatives Association, Inc. (Isda) determined that a credit event had occurred with respect to Sino-Forest Corp., a Chinese forestry company. The final price on Sino-Forest bonds for the purpose of settling CDS transactions will be determined at auction. Participating dealers in Hong Kong and Singapore will use the Creditex Real-Time screen to enter in their price indications and settlement requests.
The Credit Event Auction process was developed in 2005 by Markit and Creditex in collaboration with Isda and major credit derivative dealers. Since then, Markit and Creditex have conducted over 120 credit event auctions, and the process has become an integral part of CDS market infrastructure.
You Might Also Like...
- London Stock Exchange Group Opens New Technology Facility in Sri Lanka
- Market Guidance on Standardization of the ISDA Variation Margin CSA
- IHS Markit and Oliver Wyman Join Forces to Develop Risk Factor Modellability Service for FRTB
- CME Clearing Europe Approved as a Derivatives Clearing Organization by CFTC
- CFTC Grants CME Clearing Europe Registration as a Derivatives Clearing Organization
- Post-Trade Services Takes Centre Stage
- AxiomSL Opens Dubai Office as Part of Growing Middle Eastern Presence
- Numerix Introduces High Performance FRTB Solution