Creditex, Markit and 14 other credit derivatives dealers finished the settlement process for Washington Mutual credit derivatives through an auction event Thursday.
The auction was conducted in accordance with the International Swaps and Derivatives Association (ISDA) 2008 Washington Mutual CDS Protocol. Creditex and Markit are the official administrators of Credit Event Auctions.
The Credit Event Auction enabled market participants to cash settle triggered contracts which included single name, index, bespoke tranche and other credit derivative transactions. During the Credit Event Auction, dealers submitted orders electronically on the Creditex platform. The auction submissions were delivered to Markit electronically. Markit calculated and verified the results, and published them on www.creditfixings.com.
Between November 4 and November 6, Creditex and Markit will conduct the first-ever Credit Event Auctions in Europe to facilitate the settlement of CDS contracts referencing Landsbanki Islands hf, Glitnir Bank and Kaupthing Banki.
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