DTCC Successfully Completes Greek CDS Restructuring Credit Event Processing

The Depository Trust & Clearing Corporation (DTCC) announced today that payments on sovereign credit default swaps contracts related to Greece were successfully completed.

DTCC’s Trade Information Warehouse (TIW) provides post-trade processing services for OTC credit derivative trades.  TIW has completed the restructuring event for the Hellenic Republic (Greece sovereign entity) for single name and index (ITRAXX SovX) transactions.  US$2.89 billion in net funds (U.S. dollar equivalent) were transferred on March 26 from net sellers of protection to net buyers of protection.

The auction for Greece sovereign bonds was held on March 19.  The auction was conducted in accordance with the International Swaps and Derivatives Association (ISDA) protocols.  Markit and Creditex are the official administrators of credit event auctions (www.creditfixings.com).

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 almost 2,300 buy-side firms globally in more than 78 countries, about 98% of all credit default swaps traded are in the Warehouse.

DTCC posts data on the outstanding gross and net notional values on the top 1,000 single name entities underlying CDS contracts and all CDS indices each week.  The data is updated every Tuesday after 5 p.m. ET (2200 GMT).  The data is available at: http://www.dtcc.com/products/derivserv/data/index.php in Tables 6 and 7.  Global regulators are provided more confidential and up-to-date data through a special regulators’ Web portal.

DTCC’s Trade Information Warehouse has been available since 2006 for the post-trade processing of OTC credit derivatives trades.  Since 2008, the Warehouse has processed and settled more than 111 credit events and 12 restructuring events on CDS trades.