2003 ISDA Credit Derivatives Definitions – Note on implementation timing proposal and key changes

15 July 2013

An ISDA working group comprising members of ISDA's Credit Steering Committee (ISDA's product steering committee for credit derivatives) has been discussing proposals to amend the 2003 ISDA Credit Derivatives Definitions.

This document contains a proposed timing for implementation of the updated Definitions and a list of the key areas where the working group anticipates proposing changes to the Definitions. Some of the areas listed below have been the subject of separate consultation papers that have been circulated to ISDA’s Credit Derivatives Market Practice Committee for feedback (these consultation papers are available to ISDA member firms for review and references to those papers are included in footnotes below).

The purpose of this document is to provide guidance to market participants on the expected timing for implementing the new Definitions, i.e. when market participants may enter into new transactions using the new Definitions, and, for those elements of the new Definitions that are proposed to be included in a Protocol to allow parties to apply changes to existing transactions (but only if both parties to the transaction affirmatively adhere to the Protocol), when such changes would be effective. Although the new Definitions have not yet been finalised and published, the information below on the key areas of changes is intended to provide guidance on the impact of the changes at a high level. Before the new Definitions are finalised, a draft will be circulated to ISDA’s Credit Derivatives Market Practice Committee and Documentation Committee for comments, therefore the descriptions below remain subject to comments received as part of that consultation. These committees are open to any ISDA member firms, including buy- and sell-side members.

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