The Impact of the new ISDA CDS Definitions | CDSClear


CDSClear Publishes a Whitepaper on 2014 ISDA Credit Derivative Definitions

In anticipation of the ISDA 2014 Definition industry-wide implementation, CDSClear would like to share with you a thought-leadership paper covering business critical information including:

  • How will your CDS activities change?
  • What are the notable modifications to the current regime, and how does this impact you and your organization?
  • What are the important timelines?
  • How will the market look post implementation?
  • What can CDSClear do to help you manage the transition?

What are the 2014 Definitions?
The 2014 ISDA Credit Derivatives Definitions were published on 21st February 2014, as the new market standards for CDS transactions. The 2014 Definitions are the result of a comprehensive review and constitute a major update of the 2003 Definitions, with the goal to improve product mechanics in light of new occurrences in the market (such as bail-ins), and also incorporate some “lessons learned” from the market experience since 2009. Trading and industry-wide implementation of the 2014 Definitions is scheduled to begin on 22 September 2014.

Read on

Read the PDF by clicking this link, it explains the differences between the 2003 and 2014 definitions, how these impact pre-Sept 2014 trades (the 'legacy portfolio'). It also covers whether you can net trades subject to the two definitions, the effects on CDSClear customers, and preparations for the introduction of the 2014 definitions.