Eyes in Europe are focused on the Greek settlement of $3.2 billion of Credit-Default Swaps (CDSs) triggered by Greece after the debt-swap restructuring occurred earlier in March, tracking the effects on the insurance sector and the European common currency.

Markets are fluctuating ahead of the Greek auction today, where this auction will be held under the supervision and the rules of the International Swaps and Derivatives Association (ISDA). In addition, this auction will determine the recovery price for Greek bonds that must be paid by sellers of protection, noting that the rate will be set at 11:00 GMT, while the final decision will be made at 15:30 GMT.

Sellers of protection must settle now the outstanding insurance policies held by Greek bondholders after ISDA announced on March 9 that Greece has triggered a credit event or in other words a technical default, as the nation forced bondholders to participate in the largest debt swap restructuring ever.