CDS users mull ‘uniform’ price as Russia fallback

Pricing agreement could replace dealer estimates if sanctions scupper default auctions

Uniform-fallback-pricing-for-CDSs-mooted

Credit default swap participants are considering the creation of a uniform pricing mechanism that would see counterparties cash settle Russian contracts at an industry-agreed rate if sanctions prohibit trading in the underlying debt instruments.

The mechanism aims to avoid reliance on dealer polls to settle CDS contracts if payouts cannot be determined by an auction of underlying securities – a growing concern after a new round of US sanctions brought Russian issuers closer to default.

“It

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here