Yesterday, the Depository Trust & Clearing Corporation (DTCC) announced that its Trade Information Warehouse (TIW) successfully completed on October 21st settlement of the over-the-counter credit default swaps (CDS) related to the credit event of Lehman Brothers Holdings Inc. The CDS settlement resulted in approximately $5.2 billion in net funds transfers from net sellers of credit default protection to net buyers of credit default protection. According to DTCC, the portion of the net funds settlement allocable to trades between major dealers “was settled through normal settlement procedures of CLS Bank (the world’s central settlement bank for foreign exchange, and the central settlement provider to [TIW]) … without incident.” DTCC also noted that at the time of Lehman’s bankruptcy, approximately $72 billion in CDS written on Lehman were registered in its TIW, which calculates payments due on registered contracts, including cash payments due upon the occurrence of insolvency of any company on which the contracts are written. Pursuant to the final results of the auction held on October 10th to determine the size of the settlement on Lehman CDS, sellers of credit default protection had to pay 91.375 cents on the dollar to bondholders, as Lehman’s senior debt was fixed at 8.625 cents on the dollar.