The International Swaps and Derivatives Association (ISDA) has announced an extension of the adherence period cut-off date for the ISDA 2019 NTCE Protocol (the NTCE Protocol) until 5pm on 28 October 2019.

The original cut-off date for adherence to the NTCE Protocol was 14 October 2019.

The NTCE Protocol was released by ISDA to address issues in the credit derivatives market relating to deliberate defaults by a corporate issuer of debt in conjunction with a buyer of credit protection with the intention to trigger payouts under those credit derivatives. 

The NTCE Protocol applies to both single name and index CDS which are uncleared. 

We have prepared a one-page note on the topic which explains the key takeaways.