ISDA launches hardwiring supplement, protocol for CDS settlement auctions

By Angela McDaniels

Tacoma, Wash., March 12 - The International Swaps and Derivatives Association, Inc. said it published its auction settlement supplement and related protocol under its so-called hardwiring process on Thursday.

The supplement amends the ISDA credit-default swap definitions to incorporate CDS auction settlement provisions that eliminate the need for credit event protocols.

It also incorporates credit and succession event backstop dates that institute a common standard effective date for CDS trades and includes 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.

"Hardwiring is central to the many improvements ISDA and the industry are making to the CDS contract to further ensure that infrastructure and standards for transacting these important risk management instruments are straightforward, secure and widely implemented," ISDA executive director and chief executive officer Robert Pickel said in an ISDA news release.

According to a previous ISDA news release, 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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.