Thursday October 12 2017
News Source: Global Exchanges
Organisation: International Swaps and Derivatives Association, Inc. (ISDA)
On 11th October 2017, the International Swaps and Derivatives Association, Inc. (ISDA) published the ISDA 2017 Venezuela Additional Provisions Protocol. This Protocol attempts to counteract the imposition of sanctions on Venezuela by the US. The Protocol is applicable to all Market Participants who have entered into Credit Derivatives Transactions which reference Venezuela or Petroleos de Venezuela, S.A .
At present sanctions imposed by the US mean that credit default swap (CDS) auctions for restricted Venezuelan debt have made such trades impractical. Therefore, ISDA has published new terms for these transactions which will limit the scope of CDS contracts to debt obligations. This is helpful to Market Participants as these contracts are not restricted under the terms of the sanctions.
Furthermore, the Protocol allows for the alteration of legacy transactions in order for them to be auctioned in the future, which is currently inhibited by the present sanctions.
The Protocol is open for adherence for ISDA members and non-members from October 11, 2017 until October 18, 2017.
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