The Commission has invited comments on commitments offered separately by ISDA and Markit, to address competition concerns relating to the licensing of data and indices on credit default swaps (CDS) for the purpose of exchange trading. The Commission was concerned that because ISDA and Markit refused to license to exchange trading platforms certain data and indices used by the industry for CDS pricing, this may have blocked or delayed the emergence of an effective market for exchange traded credit derivatives. To address the Commission’s concerns, ISDA and Markit have each offered a set of commitments to apply for 10 years and be monitored by an independent trustee. The commitments include offering to license ISDA’s rights in the “Final Price” and Markit’s rights in the iTraxx and CDX indices on fair, reasonable and non-discriminatory (FRAND) terms, to submit to a binding third-party arbitration procedure and measures to prevent influence from investment banks regarding licensing decisions. The consultation period will run for one month after the draft commitments appear in the OJEU. (Source: Commission consults on ISDA and Markit CDS commitments)
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Commission consults on ISDA and Markit CDS commitments
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