Markit and Creditex, together with 14 major credit derivative dealers, have determined a price to facilitate the settlement of credit derivative trades referencing the subordinated debt of Landsbanki Islands hf in Europes first ever Credit Event Auctions.
At 3:45 pm GMT today, the final price for Landsbanki subordinated debt for the purpose of settling credit derivative transactions was determined to be 0.125%.
At 2:00 pm GMT today, the final price for Landsbanki senior debt for the purpose of settling credit derivative transactions was determined to be 1.25%.
The auctions were conducted according to the International Swaps and Derivatives Association (ISDA) 2008 Landsbanki CDS Protocol. Markit and Creditex are the official administrators of the Credit Event Auctions.
Credit Event Auctions allow market players to cash settle credit derivative deals. During a Credit Event Auction, dealers submit orders electronically on the Creditex platform. The auction submissions are delivered to Markit electronically.
Markit calculates and verifies the results, and publishes them on www.creditfixings.com.