Markit and Creditex, in partnership with 14 major credit derivative dealers, has determined a price to facilitate the settlement of credit derivative trades referencing the subordinated debt of Landsbanki Islands hf in Europe's first ever Credit Event Auctions. The final price for Landsbanki subordinated debt for the purpose of settling credit derivative transactions was determined to be 0.125%. 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 in accordance with the International Swaps and Derivatives Association (ISDA) 2008 Landsbanki CDS Protocol. Markit and Creditex are the official administrators of Credit Event Auctions.
Credit Event Auctions enable market participants to cash settle credit derivative transactions. 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.