CDS Antitrust Class Action

PROBLEM

  • Conduct investigations into the CDS market to gather economic evidence for complaint filing

  • Develop preliminary damages model to estimate excess transaction costs caused by the alleged collusion

 

SOLUTION

  • Through a thorough study of the transition of several financial markets to electronic platforms, we built a model to estimate a counterfactual bid-ask spread in the Credit Default Swap market that would have been brought about by the transparency created through introduction of central clearing houses and a regulated exchange

 

RESULT

  • We estimated class-wide and plaintiff-specific damages resulting from the antitrust behaviour

  • Fideres’s client was appointed class lead counsel. In its decision, the court highlighted the work done by Fideres to identify the theory of harm and preliminary damages assessment

  • The class action litigation led to one of the largest antitrust class action settlements in US history, with a settlement of approximately USD1.9 billion