On August 27, the International Swaps and Derivatives Association (ISDA) published a new protocol to give swap market participants an easy way to amend existing credit derivative documentation to incorporate changes that have been made to the ISDA Credit Derivatives Definitions and address the market concern about companies creating credit events for the benefit of particular credit derivative parties. The salient point of the ISDA 2019 NTCE Protocol is the incorporation of the 2019 NTCE Supplement to the 2014 ISDA Credit Definitions into existing swap agreements. The implementation date of amendments agreed via the Protocol is scheduled to be January 13, 2020, in order to coordinate with the adoption of the same changes by central clearing parties that clear credit derivatives. A party that only has cleared credit default swaps does not need to adhere to the Protocol.
The Protocol will be available for adherence on the ISDA Protocol webpage starting September 16.
The text of the ISDA 2019 NTCE Protocol is available here:
The 2019 NTCE Supplement to the 2014 ISDA Credit definitions is available here: