A tradeable index comprising credit default swaps referencing loans will most likely not be launched until the first quarter of next year, dealers said. Lawyers and dealers from the banks working on the index held a call last Wednesday, where the decision was made, then discussed some of the legal aspects behind the product.
Participants discussed whether the same protocol could be used for single-name LCDS trade settlements. Also, there are a couple of different ways the netting could be done, and the dealers still need to agree on one method to become a protocol.
The group had initially been looking at a September/October launch date, although some dealers had thought the index could be up and running as early as August (CIN, 6/23).