FYI: new CDS conventions in North America

[bob]

The attached is a doc from markit concerning the changes to the CDS market globally. The biggest one I see is that single-name in North America is going to start trading the way indices currently do: with one of two standard premium rates (100 or 500) and the rest settled upfront.

 

[angelachou]

Is this related to the source code openning of JPM's cds engine?

 

[RussianMike]

Sort of. Everything in CDS right now is moving towards exchange, so it will not be as much fun anymore

 

[tim]

the Big Bang may be someone's Big "Pain"....

 

[bob]

Thanks, Tim. This wrinkle hadn't occurred to me until the paper pointed it out.