Credit Default Swaps

Anti-competitive acts that affected the price of Credit Default Swaps (CDS)

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Among other things, Class Plaintiffs allege that, beginning in 2008, Defendants conspired to prevent exchange trading of CDS at secret meetings and through telephone and email communications. Class Plaintiffs allege that the Dealer Defendants agreed with each other not to deal with any central clearing platform that might allow CDS trading and instead to clear almost all transactions through the one clearinghouse they could control, ICE Clear Credit LLC (“ICE”). Class Plaintiffs further allege that the Dealer Defendants conspired to limit changes to the over-the-counter CDS market and imposed rules restricting participation in ICE that were designed to prevent a transition to exchange trading. Class Plaintiffs allege that the Dealer Defendants pressured Markit and ISDA not to grant any licenses that allowed CDS to trade via central limit order book or on an exchange platform, thus ensuring that some Dealer Defendant be on at least one side of every CDS transaction. According to Class Plaintiffs, Defendants’ conduct harmed Settlement Class Members by keeping the CDS market opaque, preventing competition, and maintaining inflated bid/ask spreads on CDS Transactions.

Preliminarily Approved Settlement Fund:$1,864,650,000
Class Period:January 1, 2008 through
September 25, 2015

Complexities of Transaction Data

Most, if not all of these instruments do not have uniform securities identifiers and many traded over the counter. These factors complicate the process for filing claims against this settlement fund and any related future settlement funds that are established.  Battea will utilize its extensive experience gained through years of developing the software and infrastructure used in the trading of derivative financial instruments, together with its proprietary search methods, to analyze all transaction data and identify eligible transactions and perfect claim filings on behalf of our clients. As we do in all cases, Battea will work with class counsel and the claims administrator to justify all claims and defend any deficiencies.

Battea's Depth of Derivatives Knowledge

As a result of the Battea team's deep expertise in derivatives and foreign exchange transaction data and systems, we have been consulted as experts by lead counsel in derivatives and foreign exchange-based litigation.  Prior to joining Battea, our leadership developed and deployed a leading foreign exchange (FX) trading system for use by proprietary trading desks at global banks and interbank brokers.  With several patents under their belts, our product and software development team have unparalleled skill in dealing with complex financial data involved in this case.  Our team also includes a former CFO of a leading foreign exchange interbank brokerage firm and former bank FX trader.  This combination of leading FX business and technical professionals gives Battea clients an edge in achieving accurate and defendable claims filings in complex cases like the CDS settlement.

Eligible Transactions:

The transactions eligible to make a claim against this specific settlement fund include “CDS”. Meaning any and all types of credit default swap(s) and CDS-based products, including, without limitation, single-name CDS, CDS on corporate, sovereign and municipal reference entities, tranche CDS, basket CDS, index CDS, and CDS futures. A “CDS Transaction” means (i) any purchase, sale, trade, assignment, novation, unwind, termination, or other exercise of rights or options with respect to any CDS, whether executed over-the-counter or via inter-dealer brokers, a centralized clearinghouse, a central limit order book, an exchange, a swap execution facility, or any other platform or trading facility; or (ii) any decision to withhold a bid or offer on, or to decline to purchase, sell, trade, assign, novate, unwind, terminate or otherwise exercise any rights or options with respect to any CDS.

Eligible Parties:

If you, or your company, have entered into a CDS Transaction between January 1, 2008 and September 25, 2015, you may be eligible to recover part of the  $1,864,650,000 Settlement Fund.