Small Bang Protocol

ISDA has published a further Supplement (the “Restructuring Supplement”) to the 2003 ISDA Credit Derivatives Definitions to extend the auction hardwiring provisions (implemented by the Big Bang Protocol on April 8, 2009) to Restructuring credit events, while replicating, to the extent practicable, the maturity limitation requirements for Deliverable Obligations contained in the 2003 Definitions. The Restructuring Supplement can be incorporated into the Confirmations of new CDS contracts and into existing CDS contracts via the 2009 ISDA Credit Derivatives Determinations Committees, Auction Settlement and Restructuring CDS Protocol (the “Small Bang Protocol”).

The Small Bang Protocol also offers parties a second and final opportunity to adhere to the Big Bang Protocol which closed for Adherence on April 7, 2009.   By adhering to the Small Bang Protocol, a party that did not adhere to the Big Bang Protocol will be deemed to have adhered to the Big Bang Protocol. For a full explanation and related documentation to the Big Bang Protocol click here.

Full details on the Small Bang Protocol, including FAQs, supplemental materials, and a list of adhering parties, can be found here.

Recognition of Cross-product Netting is Critical

US regulators are in the process of making important changes to the regulatory capital framework by proposing modifications to the enhanced supplementary leverage ratio, which should help stop it from acting as a non-risk-sensitive constraint on bank capacity – a...

ISDA, GFXD Response to FCA on SI Regime

On September 10, ISDA and the Global Foreign Exchange Division (GFXD) of the Global Financial Markets Association responded to the Financial Conduct Authority's (FCA) consultation paper CP25/20 on the systematic internalizer (SI) regime for derivatives and bonds. ISDA and the...

ISDA Response on Clearing Costs

On September 8, ISDA responded to consultation by the European Securities and Markets Authority (ESMA) on a draft regulatory technical standard on clearing fees and associated costs (article 7c(4) of the European Market Infrastructure Regulation (EMIR)). In the response, ISDA...