has prepared this brief summary of frequently asked questions to assist
in your consideration of the 2006 Dana CDS Index Protocol (the “Dana
THIS FREQUENTLY ASKED QUESTIONS DOES
NOT PURPORT TO BE AND SHOULD NOT BE CONSIDERED A GUIDE TO OR AN EXPLANATION
OF ALL RELEVANT ISSUES OR CONSIDERATIONS IN CONNECTION WITH THE DANA PROTOCOL.
PARTIES SHOULD CONSULT WITH THEIR LEGAL ADVISERS AND ANY OTHER ADVISER
THEY DEEM APPROPRIATE PRIOR TO USING OR ADHERING TO THE DANA PROTOCOL.
ISDA ASSUMES NO RESPONSIBILITY FOR ANY USE TO WHICH ANY OF ITS DOCUMENTATION
OR OTHER DOCUMENTATION MAY BE PUT.
This Frequently Asked Questions webpage is
divided into three sections: (i) questions relating to the submission
of Adherence Letters; (ii) questions relating to the election of an entity
not to participate in the Dana Protocol; and (iii) questions relating
to the substance of the Dana Protocol itself.
Adherence Letter Submission Process
When do I need to send in my Adherence Letter?
The Dana Protocol is open between 9:00 a.m. New York Time on Thursday,
March 16, 2006 and 5:00 p.m. New York Time on Thursday, March 23, 2006.
Any entity must email its Adherence Letter to ISDA by 5:00 p.m. New York
Time on Thursday, March 23, 2006, or it will not be able to participate
in the Dana Protocol.
How do I send in my Adherence Letter?
All Adherence Letters must be delivered by email to firstname.lastname@example.org.
In the email, you must submit both your conformed and
executed copies of the Adherence Letter.
The Adherence Letter(s) should be on your
institution’s letterhead. Nothing in the form Adherence Letter available
on ISDA’s website may be changed with the exception of completing
the details of your institutional name, date and signature block.
You are not required to send your original
Adherence Letter(s) by mail to ISDA.
What is a conformed copy?
A conformed copy of the Adherence Letter means that the name of the authorized
signatory (for example, Patricia Smith) is typed rather than having Patricia
Smith’s actual signature on the letter. ISDA only posts on its website
the conformed copy of all Adherence Letters.
You must also submit an executed, or signed,
copy of the Adherence Letter in addition to the conformed copy of the
Adherence Letter. ISDA keeps the executed copy of the Adherence Letter
for its files and does not share the executed copy with anyone else.
Who is an authorized signatory?
An authorized signatory to the Adherence Letter is an individual who has
the legal authority to bind the adhering institution.
What if I am an investment or asset manager
– how do I complete the signature block?
If you are an investment or asset manager and act on behalf of multiple
funds, you must indicate the following in the signature block: “Investment/Asset
Manager, acting on behalf of the funds and accounts listed in the relevant
Master Agreement between it and another Adhering Party”. A separate
Adherence Letter for each fund or account does not need to be submitted
to ISDA. Further, no specific names of clients of the investment/asset
manager will be publicly disclosed on the ISDA website in connection with
the Dana Protocol.
However, in order for Market Orders to be
calculated by Participating Bidders, each such investment/asset manager
is required to provide a list of all funds and accounts that it acts on
behalf of to each Participating Bidder that has (or whose affiliate has)
entered into a Master Agreement with any of those funds or accounts. As
provided in paragraph (1) of the Auction Methodology set out in Exhibit
3 of the Dana Protocol, on the Business Day prior to the Auction Date,
the Administrators (Markit and Creditex) will publish a list of the Participating
Bidders on their respective websites. In addition, contact details will
be available for the Participating Bidders through their Adherence Letters
on the ISDA website.
Can I change the text of the Adherence
No. The Adherence Letter must be in the same format as the
form letter published in the 2006 Dana CDS Index Protocol.
You may obtain a copy of the form Adherence Letter by visiting the ISDA
and clicking on “2006 Dana CDS Index Protocol” and then clicking
on “Form of Adherence Letter”.
Does it cost any money to adhere to the
Entities Electing Not to Adhere
to the Dana Protocol
What happens if my institution or fund does not adhere to the Dana
If your institution or fund elects not to participate in the Dana Protocol,
then you must bilaterally settle each of your trade(s) with each of your
counterparties as such trade(s) relate to Dana Corporation. You will not
be able to take advantage of the auction mechanic and should contact your
counterparty or counterparties immediately if you do not plan to participate
in the Dana Protocol.
Details relating to the Dana
Does adhering to the Dana Protocol affect my single name trades?
Single name trades will not be part of the auction process provided for
by the Dana Protocol. Thus, single name trades on Dana Corporation remain
subject to the physical settlement procedures in those trades’ governing
Who runs the auction?
The auction will be administered by Creditex and Markit and not by ISDA.
When is the auction?
The auction is scheduled for 10:00 a.m. New York Time on Friday, March
31, 2006. Details of the auction results will be posted at www.creditfixings.com.
When is the Cash Settlement Date?
The Cash Settlement Date is expected to be Wednesday, April 12, 2006.
How are accruals calculated?
The Fixed Rate on the Dana Portion shall accrue to but exclude March 20,
2006 for purposes of the payment due on that date. However, a rebate of
the Fixed Rate accrual on the Dana Portion for the period from and including
March 7, 2006, to but excluding March 20, 2006, will be added to the Cash
Settlement Amount to be paid to Buyer on the Cash Settlement Date.