Who sits on the decision-making committee? Many of the same players who would have to pay off if the CDS contacts were triggered.
Conflict of interest perhaps?
Greece sovereign debt, a "credit event", CDS and the ISDA!
On Thursday the International Swaps and Derivatives Association, or ISDA, is reportedly going to begin work on its decision for what the Greek sovereign debt "credit event" will ultimately be called, and therefore what it will be considered as per the arcane legal parlance of the bond official statements.
This decision will go a long way in determining whether the outstanding insurance on Greece sovereign debt, aka Credit Default Swaps (CDS), will be triggered and have to pay off.
That, as they say, would be no small deal although the actual impact won't be known until it happens!
And now for an encore presentation of the article at TPC February 1, 2012: "A Greece bond haircut definitely won't look like this!
He was also a General Partner and Member of the Executive Committee of two New York Stock Exchange firms and President of Sinclair Global Clearing Corporation (commodity clearing firm) and Global Arbitrage (derivative dealer in metals and currencies)..." (Source)
ISDA (International Swaps and Derivatives Association) - "... is a trade organization of participants in the market for over-the-counter derivatives. It is headquartered in New York, and has created a standardized contract (the ISDA Master Agreement) to enter into derivatives transactions..." (Source)
An interview between Ellis Martin and Jim Sinclair
The interview at The Ellis Report makes for extremely interesting reading as it gives some of the details regarding the ISDA, who the players are, what the ramifications of their decisions concerning Greece sovereign debt could be and why then it can be assumed with a fairly high degree of certainty that whatever decision they come to will not include any language that could trigger a CDS event.
Read the interview at The Ellis Report here.