The International Swaps and Derivatives Association, Inc. (ISDA) today announced the launch of a revised documentation template for credit default swaps referencing the iTraxx® LevX® index of European leveraged loans, an index administered by Markit Group Limited. The revised template incorporates provision for settlement by reference to an auction following a credit event, bringing the European documentation in line with the North American Loan CDS documentation in this regard.
Markit and Creditex, in partnership with nine major credit derivative dealers, have successfully conducted a Credit Event Auction to facilitate the settlement of credit derivative trades referencing Tembec Industries Inc., a unit of Tembec Inc. At 2:00 pm EST today, the final price was fixed at 83.00%. Markit and Creditex are the official administrators of Credit Event Auctions.