To keep DerivSource members well-informed, all ISDA statements and updates on Lehman Brothers will be posted in the Speaker’s Box section. Please find all news and previously issued ISDA statements and updates below.
ISDA issued the following updated statement on its web site Monday. Please view details below but for additional information go www.isda.org
Lehman Brothers – Update – Monday 15th September
ISDA expects the following procedures to apply in relation to the evolving situation regarding Lehman Brothers:
In either case, ISDA advises participants to look to recognized news and information sources in order to determine the current situation regarding Lehman Brothers. FAQ on Lehman Filing FAQ on Lehman Close-Out
ISDA issued a press release offering comments on the recent industry developments. Please find full details via DerivSource.com link…
The International Swaps & Derivatives Association has posted the following statement on it’s homepage confirming a netting trading session will take place today to allow financial institutions to reduce the risk associated with a potential bankruptcy filing of Lehman Brothers. Monday is sure to be an interesting day in the world of OTC derivatives!
Please find the statement included below but also at http://www.isda.org/index.html
Lehman Netting Trading Session Protocol
ISDA confirms a netting trading session is taking place between 2 pm and 4 pm New York time today for OTC derivatives. Product classes involved are credit, equity, rates, FX and commodity derivatives. The purpose of this session is to reduce risk associated with a potential Lehman Brothers Holding Inc. bankruptcy filing. Trades are contingent on a bankruptcy filing at or before 11:59 pm New York time, Sunday, September 14, 2008. If there is no filing, the trades cease to exist. These trades are subject to a protocol which is being distributed by ISDA (International Swaps and Derivatives Association). Traders should execute the protocol and email a copy of the signature page to Mark New at ISDA (email@example.com) with LEHMAN PROTOCOL in the subject line. Click here for Protocol Text.
Market participants have indicated that they are willing to trade until at least 6:00 New York time. Parties should communicate with each other as to their willingness to trade later than 6:00.