Talk:Credit default swap
From Riski
- Small Bang Protocol Adherence Period Closes on July 24, 2009 K&L Gates Investment Management Alert, Gordon F. Peery, July 21, 2009
"In its first concerted effort to standardize certain over-the-counter (“OTC”) derivatives and address problems surrounding the settlement of credit default swaps (“CDSs”), the International Swaps and Derivatives Association, Inc. (“ISDA”) published earlier this year the Big Bang Protocol, which became effective on April 8, 2009.
That protocol, among other things, enabled adhering parties to automatically amend CDSs that are triggered by credit events such as bankruptcy, failure to pay and certain other standard credit events. A summary of the Big Bang Protocol is available at ISDA Launches the Big Bang Protocol, Determinations Committees and SNAC CDSs, Investment Management Alert, by Gordon F. Peery, Robert A. Wittie, Anthony R.G. Nolan and Stacey H. Crawshaw-Lewis, March 13, 2009. Importantly, the Big Bang Protocol did not bring about the settlement by auction of CDSs upon the occurrence of a restructuring credit event."
- [1] October 4, 2005 letter from the 14 major OTC derivatives dealers to the President of the New York Federal Reserve Bank:
- Development of metrics to measure industry progress
- Implementation of a guide to support the ISDA Novation Protocol
- Establishment of target dates and levels by which to reduce confirmation backlogs
- Plan for industry usage of DTCC confirmation and settlement functionality
- Plan for improvement of CDS settlement process
- Buffett isn't the only big name investor who dislikes credit-default swaps. Soros has joined the chorus of outrage. (Bloomberg News video)
