International Swaps And Derivatives Association Publishes 2003 ISDA Credit Derivatives Definitions

The International Swaps and Derivatives Association (ISDA) yesterday announced the publication of the 2003 ISDA Credit Derivatives Definitions. The new Definitions provide global standard documentation for the rapidly growing credit default swap product.

"The 2003 ISDA Credit Derivatives Definitions reflect changes in industry dynamics over the past three years," said Robert G. Pickel, Executive Director and Chief Executive Officer of ISDA. "The new provisions address major challenges that have shaped the course of the credit derivatives business, and represent extensive input from all sides of this important and burgeoning market."

Key changes represented in the new Definitions include: A new test for identifying the Successor to a Reference Entity; Amendments to various Credit Events, including Bankruptcy, Repudiation/Moratorium and Restructuring; Alternative Procedures for non-deliverable bonds and loans: Guarantees; and Novation Provisions.

ISDA has contributed in the past to the standardization of the credit derivatives documentation, beginning in 1998 with its publication of the Long-Form Confirmation and in 1999 with the ISDA Credit Derivatives Definitions. More recently, three Supplements to the 1999 Definitions were published in 2001.