ISDA Publishes Protocol for Dana

NEW YORK (HedgeWorld.com)–The International Swaps and Derivatives Association announced the publication of a protocol created to facilitate settlement of credit derivatives trades involving Dana Corp., the Toledo, Ohio-based auto parts supply company that filed for bankruptcy March 3.

Dana is involved in various credit derivative indexes, including those published by Dow Jones CDX and TRAC-X.

ISDA’s protocol gives market participants a way to settle trades based on such indexes, by amending the documentation for such trades from physical to cash settlement and participating in an auction to determine the final price for certain Dana bonds.