ISDA Recommends Certain CDS Documentation Changes

The ISDA Credit Steering Committee ("CSC") recommended changes to documentation practices for credit default swap ("CDS") transactions that reference German banks.

The CSC proposed the use of the "Standard European Senior Non-Preferred Financial Corporate" Transaction Type as the trading convention for single-name and index CDSs, citing a German bank that is at the "senior non-preferred level" and included under the 2014 ISDA Credit Derivatives Definitions (the "2014 Definitions"). With regard to legacy single-name and index CDS transactions utilizing the 2014 Definitions that refer to German banks, the CSC proposed a protocol for amending the "Transaction Type."

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