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ISDA aims to complete hardwiring process by April 7
By Angela McDaniels
Tacoma, Wash., March 2 - International Swaps and Derivatives Association, Inc. said it plans to publish its auction settlement supplement and open the related protocol under its so-called hardwiring process on March 12.
The protocol will be open for adherence through April 7, and changes to the documentation covered by the protocol will take effect once the protocol closes, according to an ISDA news release.
The supplement will amend the ISDA credit-default swap definitions to incorporate the CDS settlement auction terms that are currently included in the auction protocols.
It will also include provisions for the ISDA Determinations Committee, which will make binding determinations about issues such as whether a credit event has occurred, whether an auction will be held and whether a particular obligation is deliverable.
The amendments made by the auction supplement will apply to transactions entered into after the effective date, and the protocol will facilitate the amendment of existing transactions to reflect the new terms.
Plans delayed
As previously reported, ISDA planned to publish the auction supplement and protocol by Dec. 31. However, it said this timetable was affected by the major market disruptions of September and October, including the credit events relating to Fannie Mae, Freddie Mac, Lehman Brothers Holdings Inc., Washington Mutual, Inc. and the three Icelandic banks - Glitnir Banki HF, Landsbanki Islands HF and Kaupping Banki HF - the Lehman Brothers close-out and the resulting accelerated timetable mandated for central counterparty clearing.
The association then planned to complete the hardwiring process by mid-March but has extended the schedule in order to give industry participants more time to review and implement the supplement and protocol, ISDA said Monday.
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