On Monday, the International Swaps and Derivatives Association, Inc. (ISDA) announced that it will issue a CDS auction protocol regarding the settlement of credit derivatives that reference Smurfit-Stone Consolidated Enterprise Inc. The protocol is a response to Smurfit-Stone’s recent filing for reorganization under Chapter 11 in the US Bankruptcy Court in Wilmington, Delaware.  

Additionally, LCDX dealers will vote on whether to hold an auction for loan-only CDS transactions that reference Smurfit-Stone. If the dealers elect to have an auction, ISDA will publish the auction terms, as was done last year in the Tribune loan-only CDS auction process.