Isda publishes Quebecor protocol for February auction

Isda announced the launch of a protocol created to facilitate settlement of credit derivative trades involving Quebecor World. The protocol permits cash settlement of single-name, index, tranche and other credit derivative transactions. Parties will be able to settle their trades on a multilateral basis using a final price established at auction on 19 February. Markit and Creditex will administer the auction. The adherence period for the protocol runs until 8 February.

This is the second time this settlement methodology has been applied to a broad range of credit derivative transactions. It was also implemented in the 2006 Dura CDS protocol.