Markit today announced that Markit iTraxx LevX index dealers have voted for a Credit Event Auction to facilitate settlement of loan-only credit default swap (LCDS) trades referencing British Vita, which is a constituent of the Markit iTraxx LevX.
The auction terms, including the auction date, will be determined by Markit iTraxx LevX dealers according to LCDS Auction Rules published on the International Swaps and Derivatives Association (ISDA) website. Markit and Creditex are the official administrators of Credit Event Auctions.
The auction date, once it has been determined, will be posted on www.creditfixings.com.
The Credit Event Auction process was launched in 2005 by Markit and Creditex in collaboration with ISDA and major credit derivative dealers. Since then, Markit and Creditex have conducted 28 Credit Event Auctions and the process has become an integral part of the CDS market’s infrastructure.