Markit and Creditex Announce Initial Bidding Results of Movie Gallery Credit Event Auction
London and New York, 23 October 2007 – Markit Group Limited (“Markit”) and Creditex Group Inc. (“Creditex”) announce the “Initial Bidding Period” results of the Credit Event Auction for contracts referencing loans of Movie Gallery, Inc. The Inside Market Midpoint is 90.875% and the “Open Interest” is $30,500,000 to buy. The Limit Offer Cap is 100%. Creditex and Markit are the official administrators of the Credit Event Auctions.
The Inside Market Midpoint is the indicative level based on two-way markets entered into the auction by 11 participating dealers. The Open Interest is the net balance between buy and sell physical settlement requests submitted by participating dealers. The Limit Offer Cap is the highest level at which dealers can submit Limit Offers.
During the Subsequent Bidding Period of the Credit Event Auction, dealers will submit Limit Offers to fill the Open Interest. The final price for referenced loans will be published at 2.00pm EST. The auction is run in accordance with the LCDS Settlement Terms published by ISDA on May 22, 2007.
Participating dealers in a Credit Event Auction submit orders electronically on the Creditex platform. The auction submissions are delivered to Markit electronically who calculates and verifies the results, and publishes them on the official website www.creditfixings.com.
The Credit Event Auctions provide a transparent, fair and operationally efficient process for settling CDS and LCDS contracts. Movie Gallery, Inc. is the first corporation for which a Credit Event Auction has been held to settle LCDS and LCDX index trades. Previously, auctions have been held for Collins & Aikman, Delta Air Lines, Northwest Airlines, Delphi Corporation, Calpine Corporation, Dana Corporation and Dura.
Timeline for Credit Event Auction
9.45am - 10.00am Dealers submit Inside Markets, Physical Settlement Requests
10.30am Initial Bidding results published
12.45pm - 1pm Dealers submit Limit Bids or Offers (as applicable)
2.00pm Final Price published
All times in EST.
- Ends -
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 $3 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.