CDS on emerging market names adopted standardised coupons from September 21.
Coupons of 100bp and 500bp have been introduced initially, and additional coupons may follow for trading and for back-loading of historical trades into the DTCC’s trade information warehouse.
Trades for emerging markets in central and eastern Europe, the Middle East, Africa and Latin America will also switch from semi-annual to quarterly payments and full first coupons.
Payments on trades booked before September 21 remain semi-annual, even upon novation or assignment.
In April, US single-name CDS were adapted to introduce fixed coupons of 100bp and 500bp, while Europe’s major CDS dealers agreed to adopt standardised coupons of 25bp, 100bp, 500bp and 1,000bp from June 22.