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DTCC Trade Information Warehouse Completes Credit Event Processing for Washington Mutual


Last update: 4:10 p.m. EST Nov. 7, 2008
NEW YORK, Nov 07, 2008 (BUSINESS WIRE) -- The Depository Trust & Clearing Corporation (DTCC) announced that its Trade Information Warehouse (Warehouse) successfully completed today the automated credit event processing and settlement of Washington Mutual Inc. (WaMu) over-the-counter (OTC) credit default swap (CDS) contracts. Approximately US$1.4 billion (in U.S. dollar equivalents) in net funds were transferred from net sellers of protection to net buyers of protection. The portion of this net funds settlement allocable to trades between major dealers was settled through the normal settlement procedures of CLS Bank (the world's central settlement bank for foreign exchange, and the central settlement provider to the Warehouse).
The net funds transfers covered outstanding WaMu single-name CDS as well as CDS index (CDX) contracts and CDS index tranches in which WaMu was a component. WaMu was a component in approximately 35 indices serviced by the Warehouse, with component percentages ranging from 0.80% to 4.17%.
The October 23 credit event auction for WaMu set a price of 57 cents on the dollar for WaMu bonds. As of October 23, the gross notional value of outstanding single name credit default swaps for WaMu registered in the Warehouse stood at $41 billion.
DTCC's Warehouse is the global electronic central registry for credit default swaps. With a client base that includes virtually all global derivatives dealers and more than 1100 buy-side firms in 31 countries, the vast majority of credit default swaps traded have been registered in the Warehouse.
On November 4 DTCC began releasing data on the outstanding gross and net notional values ("stock" values) on the top 1,000 underlying CDS single-name reference entities and all CDS indices registered in the Warehouse. Certain aggregates of this data are also included on a gross notional basis only. The data, which will be updated weekly on Tuesdays after 5:00 p.m. EST, is intended to address market concerns about transparency. To view this data, go to http://www.dtcc.com/products/derivserv/data/index.php
About DTCC
DTCC, through its subsidiaries, provides clearance, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, money market instruments and over-the-counter derivatives. In addition, DTCC is a leading processor of mutual funds and insurance transactions, linking funds and carriers with their distribution networks. DTCC's depository provides custody and asset servicing for more than 3.5 million securities issues from the United States and 110 other countries and territories, valued at US$40 trillion. In 2007, DTCC settled more than US$1.86 quadrillion in securities transactions. DTCC has operating facilities in multiple locations in the United States and overseas.
DTCC Deriv/SERV LLC, a wholly-owned subsidiary of DTCC, provides automated matching and confirmation for OTC derivatives contracts, including credit, equity and interest rate derivatives. According to major market participants, over 90% of credit derivatives traded globally are electronically confirmed through Deriv/SERV. The Trade Information Warehouse, a service offering of Deriv/SERV launched in November 2006, is the market's first and only comprehensive trade database and centralized electronic infrastructure for post-trade processing of OTC derivatives contracts over their lifecycles, from confirmation through to final settlement.
SOURCE: The Depository Trust & Clearing Corporation
The Depository Trust & Clearing Corporation
Judy Inosanto, 212-855-5424
[e-mail]
or
Melanie Best ,212-855-5127
[e-mail]

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