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.