The International Swaps and Derivatives Association, Inc. (ISDA) today announced that, after consultation with industry participants, it will launch a protocol to facilitate settlement of credit derivative trades involving Kaupþing Banki hf, for which a “receivership committee” was appointed on Thursday, October 9, 2008.
ISDA has previously announced that it will launch credit derivatives protocols in relation to two other Icelandic banks, Landsbanki Islands hf and Glitnir Banki hf.
The Protocol will be open to ISDA members and non-members alike. ISDA will publish further details in due course and these will be available at www.isda.org.
ISDA’s protocol mechanism has helped facilitate a seamless settlement procedure for other trades. ISDA has also successfully implemented Protocols for credit derivative transactions referencing Tembec, Fannie Mae and Freddie Mac. The auction in relation to the Lehman Brothers Holdings Protocol is scheduled for October 10.