Credit derivatives

The International Swaps and Derivatives Association, Inc. (ISDA) today announced the publication of a paper that reviews the formation, structure and workings of the ISDA Credit Derivatives Determinations Committees.

IntercontinentalExchange (NYSE: ICE), a leading operator of global regulated futures exchanges, clearing houses and over-the-counter (OTC) markets, announced that its credit default swap (CDS) clearing houses surpassed $30 trillion in cumulative gross notional value during the clearing cycle ending April 26, 2012. ICE Clear Credit, ICE's North American CDS clearing house, also announced that HSBC Securities (USA) Inc. was approved as a member of the clearing house.

The International Swaps and Derivatives Association, Inc. (ISDA) today announced that its EMEA Credit Derivatives Determinations Committee resolved that a Restructuring Credit Event occurred in respect of North Rock Asset Management Plc. 

The Committee determined that an auction will be held in respect of outstanding CDS transactions. ISDA will publish further information regarding the potential auction on its website, www.isda.org/credit, in due course.

New solution reduces trade fail risks while increasing operational efficiency

The International Swaps and Derivatives Association, Inc. (ISDA) today announced that its EMEA Credit Derivatives Determinations Committee (DC) voted on the question of whether a Failure to Pay Credit Event had occurred in respect of SEAT PAGINEGIALLE S.P.A. The relevant supermajority of DC members required for the question to be decided was not reached. 

DTCC Continues Expansion of Public Data on OTC Credit Derivatives

The Depository Trust & Clearing Corporation (DTCC) expanded its public release of data in the Trade Information Warehouse's global repository to include a breakout of outstanding credit default swap (CDS) contract values in their currencies of denomination. This added information is expected to help provide greater transparency into the risk exposure of a particular currency to the CDS market.

The Depository Trust & Clearing Corporation (DTCC) today has brought further transparency to the global credit default swaps (CDS) market, worth more than $31 trillion, by expanding its public release of CDS data maintained in its Trade Information Warehouse to include historical information on those contracts.

Several DerivSource members and my contacts have forwarded this blog to me in the last few weeks so I thought I'd post a snippet of this so you can all read it. Clearly, knowledgeable industry participants feel the need to give the rest of the world a reality check in just how derivatives work and what value they offer to the global financial market.

Here is the blog published on Wilmott...

NetDelta addresses inefficiencies and risks inherent to the OTC derivatives market

Knight Capital Group, Inc. today introduced NetDelta(TM), an electronic settlement platform for the credit derivatives market. NetDelta addresses market infrastructure inefficiencies and underlying risks inherent in OTC derivatives by providing buy- and sell-side firms with comprehensive, real-time solutions for entering, maintaining and exiting new positions. NetDelta will also be able to reduce counterparty risk for existing positions in the near future.

The International Swaps and Derivatives Association, Inc. (ISDA) today announced the successful implementation of its Protocol for credit derivative transactions referencing Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac), the two US government sponsored entities (GSEs) that were placed in conservatorship on Sunday, September 7. A record 651 organizations adhered to the Protocol.