As the official administrators of Credit Event Auctions, Creditex and Markit determined a price to facilitate the settlement of credit derivative trades referencing the senior debt of Kaupthing Banki hf.
In collaboration with 14 major credit derivative dealers Creditex and Markit enabled market participants to cash settle credit derivative transactions. The final price for Kaupthing senior debt for the purpose of settling credit derivative transactions was determined to be 6.625%.
The final price for Kaupthing subordinated debt for the purpose of settling credit derivative transactions will be published on www.creditfixings.com. During a Credit Event Auction, dealers could submit orders electronically on the Creditex platform. The auction submissions were delivered to Markit electronically.
The auction process was conducted in accordance with the International Swaps and Derivatives Association (ISDA) 2008 Kaupthing CDS Protocol.
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