Scottish independence vote spurs UK sov CDS uncertainty

Scotland small
By Hazel Sheffield
09 Sep 2014

Holders of UK sovereign credit default swaps are facing uncertainty in the event of a Scottish exit from the union, which could trigger a succession credit event resulting in outstanding contracts being split in two.

Nigel Dickinson, partner at Norton Rose Fulbright in London, told GlobalCapital a split in CDS contracts depends on a yes vote at the referendum on Sept. 18 and the International Swaps and Derivatives Association’s determinations committee deciding to call a succession event in the aftermath. “Any split would ...

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