ISDA®
INTERNATIONAL
SWAPS AND DERIVATIVES ASSOCIATION, INC.
NEWS RELEASE
For Immediate Release, Thursday, August 27, 2009
For More Information, Please Contact:
Deirdre Leahy, ISDA New York,
+1 212-901-6021, dleahy@isda.org
Donna Chan, ISDA Hong Kong, +852 2200 5906, dchan@isda.org
ISDA to Publish Auction
Terms for SSP
In accordance with the ELCDS Auction Rules, published on ISDA's website, the Markit iTraxx LevX Market Makers have determined that the Reference Entity (SSP Financing Limited) has failed to make payments due on its Senior Facility. An auction will be held for ELCDS transactions referencing any Loans which would constitute Reference Obligations for purposes of the LevX Senior Indices.
ISDA will facilitate the process by publishing the auction terms on its website www.isda.org, in due course. The auction terms, including the auction date, will be determined by the Markit iTraxx LevX Market Makers according to the ELCDS Auction Rules. The auction will be administered by Markit and Creditex.
The auction terms will set out a settlement mechanism similar to that used to settle recent credit events including Edscha, Ferretti, Sanitec and British Vita. Following the publication of the ISDA 2009 European Loan CDS Protocol and the ISDA 2009 European Cancellable Form LCDS Protocol, the auction mechanism is already built into the relevant ISDA standard loan-only CDS documentation and previously published cancellable (non-ISDA) documentation trades as between parties that adhered to those Protocols, therefore no further protocol will be published.
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 over 830 member institutions from 58 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: www.isda.org.
®ISDA is a registered trademark of the International
Swaps and Derivatives Association, Inc.