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.
Latest
FSS published its Guidelines on Margin Requirements for Non-Centrally Cleared OTC Derivatives Transactions
On September 1, the FSS published its Guidelines on Margin Requirements for Non-Centrally Cleared OTC Derivatives Transactions. The guidelines extend the temporary exemption for equity options from the margin requirements until August 31, 2027. ISDA previously submitted a response to...
Updated OTC Derivatives Compliance Calendar
ISDA has updated its global calendar of compliance deadlines and regulatory dates for the over-the-counter (OTC) derivatives space.
10 Years of the ISDA SIMM
As the derivatives industry prepared for the September 2016 implementation of initial margin requirements for non-cleared derivatives, one challenge stood out: counterparties needed to agree on the amount of initial margin to be exchanged. But if each firm developed its...
Expanding the Universe of Eligible VM
ISDA conducted a series of interviews with buy- and sell-side firms to understand the drivers of a growing use of non-cash assets as variation margin (VM) for non-cleared over-the-counter (OTC) derivatives and the barriers that remain to expanding the use...