ISDA: Additional Provisions Relating to Credit Derivative Transactions with a Restricted Delivery Party
The ISDA announced the publication of Additional Provisions relating to Credit Derivative Transactions with a Restricted Delivery Party where Physical Settlement applies.
The Additional Provisions are for use where the settlement method is physical settlement and one of the two conditions applies:
- Either party to the Credit Derivative Transaction is restricted from holding a Loan; or
- There is a limit on the outstanding principal balance of a Bond which it may hold.
See: ISDA News Release.