What RED Codes Identify in Credit Default Swaps

Summary

The document clarifies the meaning of a RED Code, or Markit Reference Entity Database Code, in the context of credit default swaps. The question asks whether the code uniquely identifies a traded derivative and whether it can be used to obtain that derivative’s ISIN. The answer explains that the code identifies the reference entity underlying a CDS contract, which is the entity whose credit risk the contract references.

That distinction matters for interpreting instrument identifiers: an identifier for the reference entity does not, by itself, identify a particular derivative contract. The document gives no procedure for obtaining an ISIN, nor does it discuss contract terms such as maturity or restructuring provisions. Its scope is limited to the stated purpose of the RED Code, so it should not be treated as a complete guide to CDS reference data or instrument identification.

Key ideas

• A RED Code identifies the reference entity underlying a credit default swap.
• The code refers to the entity whose credit risk is referenced by the contract.
• The document does not establish that a RED Code uniquely identifies a specific traded CDS instrument.
• It gives no method for deriving a derivative’s ISIN from the RED Code.

Tags

# Is Red Code unique per derivative instrument


# Is Red Code unique per derivative instrument












Does RED Code (="Markit Reference Entity Database Code") uniquely identify the derivative that has been traded?

Is it possible to get a derivative's ISIN code from RED Code?

## Answer by Turbodom (score 2)

https://quant.stackexchange.com/a/42715

What RED Code does is to uniquely identify the underlying reference entity of a CDS contract. Hence it’s name.

Shown in full with attribution under the source's licence. Licence: CC BY-SA 4.0 (Stack Exchange)

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.