ISDA EMEA Credit Derivatives Determinations Committee: Banca Monte dei Paschi di Siena S.p.A. Governmental Intervention And Restructuring Credit Events

The International Swaps and Derivatives Association, Inc. (ISDA) today announced that its EMEA Credit Derivatives Determinations Committee (DC) resolved that a governmental intervention credit event (for the purposes of trades entered into using the 2014 ISDA Credit Derivatives Definitions and referencing a subordinated obligation) and a restructuring credit event (for the purposes of trades entered into using the 2003 ISDA Credit Derivatives Definitions as supplemented and referencing either a senior or subordinated obligation) have occurred in respect of Banca Monte dei Paschi di Siena S.p.A.

The DC also resolved to hold an auction in respect of the relevant outstanding credit default swap (CDS) transactions entered into using the 2014 Definitions. The DC additionally resolved to potentially hold one or more auctions in respect of the relevant outstanding CDS transactions entered into using the 2003 Definitions (being those transactions that are subject to the Small Bang Protocol or that otherwise incorporate the 2009 ISDA Credit Derivatives Determinations Committees, Auction Settlement and Restructuring Supplement).

ISDA will publish further information regarding the auction on its website, www.isda.org/credit, in due course.