Creditex and Markit in cooperation with 14 credit derivative dealers conducted Credit Event Auction to facilitate settlement of credit derivative trades referencing Washington Mutual Inc., which filed for Chapter 11 bankruptcy protection on September 26, 2008.
Credit Event Auction was held to cash settle triggered contracts including single name, index, bespoke tranche and other credit derivative transactions. Creditex and Markit were the official administrators of the auction. Creditex provided dealers with its platform to submit orders electronically to Markit. The last one calculated and verified the results which are available on www.creditfixings.com.
The final price for Washington Mutual bonds was determined as 57%.
The next auctions Markit and Creditex plan to conduct will be on 4 and November 6 to settle CDS contracts referencing Landsbanki slands hf, Glitnir Banki hf and Kauping Banki hf.
L.D.