For Immediate Release Tuesday, May 22, 2007

For More Information, Please Contact:

Scott Marra, ISDA New York, 212-901-6013,


ISDA Publishes Documentation for LCDX 

NEW YORK, Tuesday, May 22, 2007 – The International Swaps and Derivatives Association, Inc. (ISDA) today announced the launch of trading documentation and auction rules relating to the North American Loan Credit Default Swap Index (LCDX).


LCDX is a tradeable index with 100 equally-weighted underlying single-name loan-only credit default swaps (LCDS). The default swaps each reference an entity whose loans trade in the secondary leveraged loan market, and in the more recent LCDS market.


ISDA developed the documentation for the single name and index products. The index is being brought to the market by CDS IndexCo, a firm backed by a consortium of dealer banks active in the credit derivatives market. The indices are administered by Markit Group Limited (Markit), which also acts as the licensing, marketing and calculation agent for the indices.


ISDA also announced today that it has published revised documentation for the North American (Single-Name) Loan Credit Default Swap (LCDS), which was originally published on June 8, 2006 by ISDA to facilitate LCDS transactions. The documentation was modified in order to conform to the LCDX documentation in terms of the settlement standard.


As single-name LCDS trading continues to increase in the U.S. market, ISDA has high expectations for the LCDX index,” said Robert Pickel, Executive Director and Chief Executive Officer, ISDA. “The launch of LCDX addresses credit derivative index settlement issues by ensuring strong liquidity and acting as an efficient means of hedging credit exposure.”


ISDA is also preparing an LCDS Protocol regarding “legacy” LCDS trades in order to conform to the new standard set forth in the revised LCDS documentation.  In addition, ISDA is developing LCDX tranche documentation.


The LCDX and LCDS documentation is available at ISDA’s website (


About ISDA

ISDA, which represents participants in the privately negotiated derivatives industry, is among the world’s largest global financial trade associations as measured by number of member firms. ISDA was chartered in 1985, and today has approximately 780 member institutions from 54 countries on six continents. These members include most of the world's major institutions that deal in privately negotiated derivatives, as well as many of the businesses, governmental entities and other end users that rely on over-the-counter derivatives to manage efficiently the financial market risks inherent in their core economic activities. Information about ISDA and its activities is available on the Association's web site:


About CDS IndexCo

CDS IndexCo is a consortium of 16 investment banks which are licensed as market makers in the ABX, CMBX and CDX Indexes. The market makers include: ABN AMRO, Bank of America, Barclays Capital, Bear Stearns, BNP Paribas, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JP Morgan, Lehman Brothers, Merrill Lynch, Morgan Stanley, UBS, and Wachovia.


About Markit Group Limited

Markit Group Limited is the leading provider of independent data, portfolio valuations and OTC derivatives trade processing to the global financial markets. The company receives daily data contributions from over 75 dealing firms, and its services are used by almost 1,000 institutions to enhance trading operations, reduce risk and manage compliance.

®ISDA is a registered trademark of the International Swaps & Derivatives Association, Inc.