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 credit default swaps (CDS) industry.
The Determinations Committees (DCs) were formally established approximately four years ago in March 2009 with the publication of the DC Rules, the March 2009 Supplement to the Credit Derivatives Definitions and the Big Bang Protocol. The DCs make binding determinations regarding key provisions of CDS contracts, including whether a Credit Event has occurred; whether an auction should be held to determine the final price for CDS settlement, and if so which obligations should be delivered or valued in the auction; and whether a Succession Event has occurred.
The DCs are structured to reflect a variety of market perspectives. Each of the five DCs (Americas, Asia excluding Japan, Australia-New Zealand, EMEA (Europe), and Japan) is a regional committee composed of ten voting dealers and five voting non-dealer members. Membership is at an institutional, rather than an individual level, and a list of members is available on ISDA’s website. The DC voting process is governed by the DC Rules.
“The Determinations Committees have continued to be an effective mechanism for resolving a range of questions that impact the CDS industry,” said David Geen, General Counsel, ISDA. “We would like to thank all the institutions involved for the time and resources they dedicate to this important institution.”
The firms, which will serve on the Committees effective April 27, 2013 (unless otherwise noted), are set out below:
Voting Dealers (for all regions):
Bank of America N.A.
Barclays Bank plc
Citibank, N.A.
Deutsche Bank AG
Goldman Sachs International
JPMorgan Chase Bank, N.A.
Morgan Stanley & Co. International plc
UBS AG
Consultative Dealer (for all regions):
Société Générale
Voting Non-Dealers (for all regions):
Citadel LLC: effective April 2013
D.E. Shaw Group & Co., L.P.: effective April 2013
BlueMountain Capital Management, LLC: effective July 2013
Pacific Investment Management Co., LLC: effective July 2013
Metlife, Inc.: effective November 2013
Regional Dealers:
Americas Voting Dealers: BNP Paribas
Credit Suisse International
Americas Consultative Dealer: Nomura International plc
Europe Voting Dealers: BNP Paribas
Credit Suisse International
Europe Consultative Dealer: Nomura International plc
Japan Voting Dealers: Mizuho Securities Co., Ltd
Nomura International plc
Japan Consultative Dealer: Credit Suisse International
Asia Ex-Japan Voting Dealers: Credit Suisse International
Nomura International plc
Asia Ex-Japan Consultative Dealer: BNP Paribas
Australia / New Zealand Voting Dealers: BNP Paribas
Credit Suisse International
Australia / New Zealand Consultative Dealer: Nomura International plc
Consultative Non-Dealer (for all regions):
Saba Capital Management, L.P.: effective April 2013
Elliott Management Corporation: effective November 2013
CCP Members:
Americas CCP Member: ICE Clear Credit LLC
Europe CCP Members: ICE Clear Europe Limited
LCH.Clearnet S.A.
Additional information relating to the DCs, including a paper that reviews the formation, structure and workings of the ISDA Credit Derivatives Determinations Committees, and the Rules that govern DC determinations are available on the ISDA website, http://dc.isda.org/.
