ISDA Auction Hardwiring: ISDA Streamlines CDS Settlement Auction Process

April 03, 2009
The International Swaps and Derivatives Association has published a new framework to facilitate settlement of credit default swaps. This framework includes a new Credit Derivatives Determinations Committee, Auction Settlement Supplement to the 2003 Credit Derivative Definitions, and a new Protocol (the “Big Bang Protocol”) specifying auction settlement procedures applicable to credit default swap transactions. This update examines the new supplement and protocol, which introduce important changes into the CDS market.