On August 21, 2014, ISDA® published a protocol (the 2014 CDDs Protocol) for the 2014 ISDA Credit Derivatives Definitions (2014 CDDs), as well as a guide on how to adhere to the protocol. The 2014 CDDs Protocol was originally released in draft form on August 11, 2014 (see Legal Update, ISDA Publishes Draft Protocol for 2014 Credit Derivatives Definitions).

The 2014 CDDs are an updated and revised version of the 2003 ISDA Credit Derivatives Definitions (2003 CDDs), which include basic terms used in the documentation of most credit derivatives transactions, including credit default swaps (CDS) (see Practice Note, Introduction to the 2014 ISDA Credit Derivatives Definitions). The 2014 CDDs Protocol enables market participants to apply the 2014 CDDs to existing credit derivative transactions.

The adherence period for the 2014 CDDs Protocol is open to all from August 21, 2014 to September 12, 2014, and the 2014 CDDs are scheduled to go live on September 22, 2014. The 2014 CDDs Protocol enables parties to amend the terms of their existing transactions so that they incorporate the provisions of the 2014 CDDs. Adherence is optional, and parties may continue to have their credit derivatives transactions governed under the 2003 CDDs.

To assist members, ISDA also published updated FAQs on the 2014 CDDs.

Update: On September 12, 2014, ISDA extended the adherence period for the 2014 CDDs Protocol until 12 noon EST on September 17, 2014.

Update: On September 17, 2014, ISDA announced that trading using the new 2014 CDDs is expected to begin for most standard CDS contracts on October 6, 2014 (see Legal Update, October 6: New Date for Implementation of ISDA 2014 Credit Derivatives Definitions).