Sellers of credit-default protection on bankrupt Lehman Brothers Holdings Inc. will have to pay holders 91.375 cents on the dollar, setting up the biggest-ever payout in the $55 trillion market.

The ISDA organized auction on creditfixings.com set a value of 8.625 cents on the dollar for the debt.

BNP estimates payments of more than $270b, as a result

The market for the bonds had implied a recovery rate of 13 cents on the dollar, which would be a 33% difference or 4.75 cents on the dollar.

There are more than 350 counterparties involved.

“[The payments] are insignificant when put into the context of the trillions of dollars of payments that are made through settlement systems each and every day”

—Robert Pickel, head of the ISDA