Headway Made On CDS Settlement

JPMorgan has proposed a popular compromise to the question of deliverable obligations for credit-default swaps--one of several key issues to be resolved in the creation of standardized settlement mechanics.

  • 14 Jul 2006
Email a colleague
Request a PDF

JPMorgan has proposed a popular compromise to the question of deliverable obligations for credit-default swaps--one of several key issues to be resolved in the creation of standardized settlement mechanics. A sticking point has been that lists of deliverable bonds are currently determined by a poll open only to dealers. The new proposal would allow all market participants to suggest exchangeable debt for a fee.

Kimberly Summe, International Swaps and Derivatives Association general counsel, said the fee would help create short, well-vetted lists. Dispute resolution likely would be extended from 30 days to 45 days. Other proposals have been made but dealers and end users appear most comfortable with this compromise.

Other open issues include procedures for dealing with disputes over receiveables on the list, auction errors and converting old trade contracts once settlement mechanics are finalized. ISDA is looking at methods used by exchanges in dealing with errors and is leaning toward a "Big Bang" protocol for converting all existing contracts at once.

Actual auction methodology appears more certain. ISDA likely will create a settlement committee of dealers and end users. It plans to put out an explanation when it is surer of details. "[Standardizing settlement mechanics] has been a headache," Summe said. "But it's necessary to come up with a long-term solution given the growth of the market."

  • 14 Jul 2006

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 242,241.25 929 8.19%
2 JPMorgan 223,842.40 997 7.57%
3 Bank of America Merrill Lynch 216,424.41 725 7.32%
4 Barclays 185,098.93 672 6.26%
5 Goldman Sachs 159,205.64 520 5.38%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 32,522.19 61 6.53%
2 BNP Paribas 32,284.10 130 6.48%
3 UniCredit 26,992.47 123 5.42%
4 SG Corporate & Investment Banking 26,569.73 97 5.33%
5 Credit Agricole CIB 23,807.36 111 4.78%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Goldman Sachs 10,167.68 46 8.81%
2 JPMorgan 9,894.90 42 8.58%
3 Citi 8,202.25 45 7.11%
4 UBS 6,098.17 23 5.29%
5 Credit Suisse 5,236.02 28 4.54%