Markit today announced that in response to the General Growth Properties, Inc. bankruptcy filing on April 16, 2009, Markit LCDX index dealers have voted to run a Credit Event Auction to facilitate settlement of loan-only credit default swap (LCDS) trades referencing the company, which is a constituent of series 8, 9, and 10 of the Markit LCDX index.
The auction terms, including the auction date, will be determined by Markit LCDX 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 and an auction timeline will be posted on www.creditfixings.com.
The Credit Event Auction process was launched in 2005 by Markit and Creditex in collaboration with the International Swaps and Derivatives Association and major credit derivative dealers. Since then, Markit and Creditex have conducted 48 Credit Event Auctions and the process has become an integral part of CDS market infrastructure.
