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The Big Bang Protocol and A New Structural Framework for Credit Default Swaps
March 24, 2009 Full PDF
Beginning on April 8, 2009, a new framework will apply to trading in credit default swaps referencing North American corporate credits. To give effect to the new framework, the International Swaps and Derivatives Association, Inc. ("ISDA") published the 2009 ISDA Credit Derivatives Determinations Committees and Auction Settlement Supplement (the "2009 Supplement") to the 2003 Credit Derivatives Definitions (the "2003 Definitions") and the related so-called "Big Bang Protocol." The Big Bang Protocol is open for adherence until 5:00 p.m. New York time on April 7, 2009. Contemporaneously with the effectiveness of the 2009 Supplement and the Big Bang Protocol, the credit derivatives industry has agreed to new trading conventions for North American Corporate transactions. The new framework is aimed at further streamlining the CDS market and preparing existing and future CDS trades for central clearing.