ISDA®
INTERNATIONAL
SWAPS AND DERIVATIVES ASSOCIATION, INC.
NEWS RELEASE
For Immediate Release, Tuesday, November 18, 2008
For More Information, Please Contact:
Louise Marshall, ISDA New York, +1 212-901-6014, lmarshall@isda.org
Cesaltine Gregorio, ISDA New York, +1 212-901-6019,
cgregorio@isda.org
Donna Chan, ISDA Hong Kong, +852 2200 5906, dchan@isda.org
ISDA to publish auction terms for Masonite
New York, Tuesday, November 18, 2008 - The International Swaps and Derivatives Association, Inc. (ISDA) today announced that LCDX dealers voted to hold an auction for loan-only CDS transactions referencing Canadian entity, Masonite International Corporation, which is a constituent of the Markit LCDX index.
ISDA will facilitate the process by publishing the auction terms on its website, www.isda.org, in the next few weeks. The auction terms, including the auction date, will be determined by the LCDX dealers according to the LCDS Auction Rules published on ISDA's website.
The auction terms will set out a settlement mechanism similar to that used to settle recent credit events including Lehman Brothers and Washington Mutual. However unlike those credit events, the auction mechanism is already built into ISDA's standard loan-only CDS documentation, therefore no protocol is required. This is the second time the auction has been used to settle loan-only CDS contracts, the first being Movie Gallery in October 2007. The auction will be administered by Markit and Creditex.
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 850
member institutions from 56 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 & Derivatives Association, Inc.