NEW YORK - (Business Wire) The Depository Trust & Clearing Corporation (DTCC) announced that its Trade Information Warehouse (Warehouse) successfully completed today the automated credit event processing and settlement of Landsbanki Islands hf, Glitnir Banki hf (Glitnir) and Kaupping Banki hf (Kaupping) over-the-counter (OTC) credit default swap (CDS) contracts. Approximately US$4.65 billion (in U.S. dollar equivalents) in net funds were transferred from net sellers of protection to net buyers of protection across all three reference entities. The portion of this net funds settlement allocable to trades between major dealers was settled through the normal settlement procedures of CLS Bank International (the world's central settlement bank for foreign exchange, and the central settlement provider to the Warehouse).
The auction for Landsbanki Islands hf, Glitnir Banki hf and Kaupping Banki hf were held on November 4th, 5th and 6th, respectively. The auctions were conducted in accordance with the International Swaps and Derivatives Association (ISDA) 2008 CDS Protocols for the three banks. Markit and Creditex are the official administrators of Credit Event Auctions.
DTCC’s Warehouse is the global electronic central registry for credit default swaps. With a client base that includes virtually all global derivatives dealers and more than 1100 buy-side firms in 31 countries, the vast majority of credit default swaps traded have been registered in the Warehouse.
Data on the outstanding gross and net notional values (“stock” values) on the top 1,000 underlying CDS single-name reference entities and all CDS indices registered in the Warehouse can be found on DTCC’s website at http://www.dtcc.com/products/derivserv/data/index.php. Certain aggregates of this data are also included on a gross notional basis only. The data is updated weekly on Tuesdays after 5:00 p.m. EST.
About DTCC
DTCC, through its subsidiaries, provides clearance, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, money market instruments and over-the-counter derivatives. In addition, DTCC is a leading processor of mutual funds and insurance transactions, linking funds and carriers with their distribution networks. DTCC’s depository provides custody and asset servicing for more than 3.5 million securities issues from the United States and 110 other countries and territories, valued at US$40 trillion. In 2007, DTCC settled more than US$1.86 quadrillion in securities transactions. DTCC has operating facilities in multiple locations in the United States and overseas.
DTCC Deriv/SERV LLC, a wholly-owned subsidiary of DTCC, provides automated matching and confirmation for OTC derivatives contracts, including credit, equity and interest rate derivatives. According to major market participants, over 90% of credit derivatives traded globally are electronically confirmed through Deriv/SERV. The Trade Information Warehouse, a service offering of Deriv/SERV launched in November 2006, is the market’s first and only comprehensive trade database and centralized electronic infrastructure for post-trade processing of OTC derivatives contracts over their lifecycles, from confirmation through to final settlement.
The Depository Trust & Clearing Corporation
Judy Inosanto, 212-855-5424
jinosanto@dtcc.com
