Emerging market CDS adopt standardised coupons

Isda has announced that credit defaults swap trades on emerging market names in Central and Eastern Europe, the Middle East, Africa and Latin America will, from today, adopt standardised coupons of 100bp and 500bp. Additional coupons for trading or back-loading could be introduced at a later time if and when the need arises, the association adds.

Firms will switch from semi-annual to quarterly payments and full first coupons. The move to quarterly payments applies to both the existing EM transaction types as well as the new ttandard EM transaction types and has no impact on trades prior to 21 September, which will maintain their semi-annual payments even upon novation or assignment.

Trades for emerging markets in Australia and New Zealand will also adopt standardised trading coupons of 100bp and 500bp. Additional coupons for trading or back-loading could be introduced at a later time if and when the need arises.