The auction terms, including the auction date, will be determined by Markit LCDX dealers according to LCDS Auction Rules published on the International Swaps and Derivatives Association (ISDA) website. Markit and Creditex are the official administrators of Credit Event Auctions.
A separate Credit Event Auction will be held to facilitate settlement of CDS trades referencing Smurfit-Stone, which is a constituent of the Markit CDX index.
The Credit Event Auction process was launched in 2005 by Markit and Creditex in collaboration with ISDA and major credit derivative dealers. Since then, Markit and Creditex have conducted 29 Credit Event Auctions and the process has become an integral part of CDS market infrastructure.