ISDA Announces Market Practice Changes for Asia CDS Markets
The International Swaps and Derivatives Association, Inc. (ISDA) announces market practice changes to the trading convention for credit default swaps (CDS) in Japan and Asia ex-Japan that take effect today. These changes include the adoption of standard coupons and full first coupons in CDS transactions.
“These changes are a product of industry-wide dialogue and coordinated efforts among ISDA members to promote standardization, transparency and liquidity in the Asia CDS markets," said Keith Noyes, ISDA Regional Director, Asia Pacific.
Changes include the following:
* Firms will trade Japan CDS with standard coupons of 25bp, 100bp and 500bp and full first coupons going forward;
* Firms will trade Asia ex-Japan CDS with standard coupons of 100bp and 500bp and full first coupons going forward:
Over the course of 2009, the industry successfully adopted fixed coupons in North America in April, in Europe in June and in Emerging Markets in Europe, the Middle East, Latin America and Australia/New Zealand in September.
