The International Swaps and Derivatives Association, Inc. (ISDA) today announced the outcome of the annual process to determine members of ISDA’s five regional Determinations Committees, which together comprise the global decision-making structure around events in the CDS industry.
The Determinations Committees were established in March 2009, as a key element of the process by which CDS auction settlement was incorporated into standard ISDA CDS documentation. The Committees make binding determinations, such as whether a credit event has occurred, whether an auction will be held and what obligations are deliverable for purposes of the auction. There are five regional Committees, each comprising twelve dealer firms, of which two are consultative (non-voting) and six non-dealer (buy-side) members, of which one is consultative. The determinations are made in accordance with the criteria set out in the Determinations Committees Rules.
“The Determinations Committees have proven to be an important addition to the CDS market infrastructure and an effective mechanism for resolving a range of questions that impact the CDS industry,” said David Geen, general counsel, ISDA. “In their first year of operation the Determinations Committees have resolved more than 50 questions raised by market participants. We would like to thank all the institutions involved for the time and resources they have dedicated to this important process.”
The firms which will serve on the Committees are set out below.
Global Voting Dealers (for all regions):
Bank of America / Merrill Lynch
Barclays
Credit Suisse
Deutsche Bank AG
Goldman Sachs
JPMorgan Chase Bank, N.A.
Morgan Stanley
UBS
Global Consultative Dealer (for all regions):
HSBC Bank
Voting Non-Dealer (for all regions):
Citadel Investment Group, L.L.C.: effective April 2010
D.E. Shaw Group: effective April 2010
BlueMountain Capital: effective July 2010
Aviva Investors: effective July 2010
BlackRock, Inc.: effective November 2010
Regional Dealers
Americas Voting Dealers: Citibank, The Royal Bank of Scotland
Americas Consultative Dealer: BNP Paribas
Europe Voting Dealers: The Royal Bank of Scotland, BNP Paribas
Europe Consultative Dealer: Citibank
Japan Voting Dealers:BNP Paribas, Mitsubishi UFJ Securities
Japan Consultative Dealer: Mizuho Securities
Asia Ex-Japan Voting Dealers: Citibank, The Royal Bank of Scotland
Asia Ex-Japan Consultative Dealer: BNP Paribas
Australia / New Zealand Voting Dealers: Citibank, Societe Generale
Australia / New Zealand Consultative Dealer: The Royal Bank of Scotland
Consultative Non-Dealer (for all regions):
Rabobank International (Cooperative Centrale Raiffeisen-Boerenleenbank B.A.): effective April 2010
The Determinations Committee rules and CDS documentation are available on ISDA’s website www.isda.org. A set of frequently asked questions and other information are also available there.
