The 2009 ISDA Credit Derivatives Determinations Committees and Auction Settlement CDS Protocol (or ‘Big Bang’ Protocol) represents the final step in the process known as “hardwiring”, or the incorporation of auction settlement terms into standard CDS documentation.
This is implemented by way of a supplement to the 2003 ISDA Credit Derivatives Definitions. The Auction Supplement amends the ISDA CDS Definitions to incorporate the CDS settlement auction terms that have to date been included in the auction protocols. It also includes provision for the ISDA Determinations Committee, which going forward will make binding determinations for issues such as whether a Credit Event has occurred; whether an auction will be held; and whether a particular obligation is deliverable.
The amendments made by the Auction Supplement apply to transactions entered into going forward. ISDA has also published a Protocol to facilitate the amendment of existing transactions to reflect the new terms.
Full details on the Big Bang Protocol, including FAQs, supplemental materials, and a list of adhering parties, can be found here.
Latest
Guidance for EU IM Model Application for ISDA SIMM®
EU financial and non-financial EU counterparties exchanging IM based on ISDA SIMM® should have already submitted an initial application for authorisation to their competent authority (CA), and ECB if applicable. If not, they should do so timely to ensure continued...
Joint Response on Stress Testing Framework
On February 23, ISDA, the Bank Policy Institute, the American Bankers Association, the Financial Services Forum, the Securities Industry and Financial Markets Association and the US Chamber of Commerce jointly responded to the US Federal Reserve’s consultation on the stress...
Joint Letter on Italian 2026 Budget Law
On February 23, ISDA, the Association for Financial Markets in Europe and the International Securities Lending Association jointly sent a letter to the Italian tax authorities about changes to withholding tax on dividends made in the 2026 budget law, which...
Response to FCA on UK MIFIR Consultation
On February 20, ISDA responded to the Financial Conduct Authority’s (FCA) consultation on improving the UK Markets in Financial Instruments Regulation (MIFIR) transaction reporting regime. The consultation aims to reduce the regulatory burden on firms, support sustained economic growth in...