Markit and Creditex Announce Final Bidding Results of Quebecor Credit Event Auction
Final Price Published at 2pm EST
Final Auction Price is 41.25%
London and New York, February 19, 2008 – Markit Group Limited (“Markit”) and Creditex Group Inc. (“Creditex”), in partnership with 13 major credit derivative dealers, have successfully conducted a Credit Event Auction to generate a cash settlement price for contracts referencing Quebecor World Inc. At 2.00pm EST, the final price was fixed at 41.25%. Creditex and Markit are the official administrators of the Credit Event Auctions.
Quebecor World Inc., a Canadian commercial printer, missed a January 15, 2008 interest payment on its senior notes and filed for protection from creditors on January 21, 2008, triggering a credit event on its CDS contracts referencing the company.
The Credit Event Auction enabled institutions to cash settle single-name, index and tranche CDS at the final auction price. The auction was run in accordance with the ISDA 2008 Quebecor CDS Protocol published on January 31, 2008.
During the Credit Event Auction, dealers submitted orders electronically on the Creditex platform. The auction submissions were delivered to Markit electronically who calculated and verified the results, and published them on the official website www.creditfixings.com.
The Credit Event Auction process was launched in 2005 by Markit and Creditex in collaboration with ISDA and major credit derivative dealers to facilitate the settlement of credit derivative contracts in the event of a corporate default. Previous auctions were held for Movie Gallery, Collins & Aikman, Delta Air Lines, Northwest Airlines, Delphi Corporation, Calpine Corporation, Dana Corporation and Dura.
For further information, please contact:
Markit
Teresa Chick (London) +44 20 7260 2094
Nishul Saperia (NY) +1 212 931 4931
Creditex
Brendan Nel (London) +44 20 7429 3041
Annette Bronkesh (NY) +1 973 778 8648
About Creditex
Creditex is the global market leader in the execution of credit derivatives. The first and leading e-trading platform in credit derivatives, Creditex is used by more than 1,000 traders at the world's top financial institutions. The platform has executed over $5 trillion notional this year in credit default swap (CDS) indices, single-name CDS and standardized structured credit products. Creditex has earned numerous accolades including ones from Credit, Euromoney, Forbes, IFR, Institutional Investor, Risk, Ernst & Young and Deloitte & Touche.
About Markit
Markit Group Limited is the leading provider of independent data, portfolio valuations and OTC derivatives trade processing to the global financial markets. The company receives daily data contributions from 90 dealing firms, and its services are used by almost 1,000 institutions to enhance trading operations, reduce risk and manage compliance.