Markit & ICE to hold Greek CDS settlement day on 19 March

13 March 2012

After the International Swaps and Derivatives Association (ISDA) Determinations Committee officially declared that a technical default occurred in regard to Greece at the end of last week, when bondholders accepted a ‘haircut’ of 70% and more, the 19 March 2012 has now been set aside as the official day to settle the subsequent Credit Default Swap (CDS) trades.

Creditex, a subsidiary of the IntercontinentalExchange (ICE), and Markit which both provide infrastructure to the major dealers in CDS’s, has set aside Monday 19 March for sellers and buyers to settle their contracts. Details about the Credit Event Auction to settle CDS trades on Greece’s sovereign debt can be accessed here.

CDS contracts worth billions of pounds became active after ISDA declared what it termed as “a Restructuring Credit Event with respect to The Hellenic Republic” had officially happened at the end of last week following the completion of Greece’s private sector involvement (PSI) bond swap deal.

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