DC Rules

Key Changes

All DCs Meeting Statement – 26 January 2024

The DC Rules include a process for their amendment – see DC Rule 5.2(e) of the DC Rules. The Determinations Committees are considering whether certain changes should be made to the DC Rules. Areas that the Determinations Committees may consider may include:

• The process for raising a DC Question, its acceptance or rejection by the DC, and information standards more generally, including (i) ensuring sufficient public information is provided to the DCs as to the factual background to the DC Question; (ii) the DC Rules relating to the Publicly Available Information requirement; (iii) whether questions can be accompanied by an argument/advocacy for a particular position and (iv) the related provisions addressing how the DCs ultimately make determinations.

• The role of the DCs in relation to settlement of credit derivative transactions including:
  • whether the applicable threshold for an Auction being mandatory is appropriate or should be amended  in some cases; and
  • whether an explicit reference should be added relating to the ability of the DC to make deliverability determinations in the context of Physical Settlement.

• whether the minimum trading volume requirement for participating in the DCs as a non-dealer (as set out in Schedule 2 to the DC Rules) is appropriate or should be amended.

• Procedural matters such as the timing of meetings, the timing of publication of DC determinations and the frequency of meeting statements. This includes considering whether or not certain determinations (particularly Successor determinations) could benefit from delayed effectiveness in order to provide additional time for the market to address market infrastructure consequences flowing from the decision.

The DCs may also consider other areas. Any amendments would be adopted in accordance with the DC Rules and the DC Rules provide for a public comment period prior to any amended DC Rules becoming effective (unless a Supermajority of the relevant Determinations Committees resolve otherwise). The DC may also seek feedback from relevant industry bodies as part of the public consultation and/or separately (although there is no certainty as to whether such bodies will provide feedback).There is no certainty any amendments will be proposed by the DCs or ultimately adopted. Further updates (if any) will be published in due course.

This is separate to the review of the DCs announced by ISDA: https://www.isda.org/2023/12/14/isda-launches-independent-review-of-dc-process/.

Key Changes

Consolidated version of the DC Rules as at December 2023 for reference purposes only.

Key Changes

Amendments to Section 3 (Resolutions of a Convened DC) of the 2018 Credit Derivatives Determinations Committees Rules (September 28, 2018 version, as amended by the DC Rule amendments to Section 2.2(h) dated January 27, 2020) to the Deliverable Obligations provisions.

Amendments to Section 4 (External Review) of the 2018 Credit Derivatives Determinations Committees Rules (September 28, 2018 version, as amended by the DC Rule amendments to Section 2.2(h) dated January 27, 2020) to the External Review provisions.

Key Changes

Amendment to Section 6 (Definitions) of the 2018 Credit Derivatives Determinations Committees Rules (September 28, 2018 Version) to reflect the amended List Review Date in 2020.

Key Changes

Amendment to Section 3.3(h) to reflect the 2019 Narrowly Tailored Credit Event Supplement to the 2014 ISDA Credit Derivatives Definitions.

Key Changes

Amended DC Rules to provide ISDA with the ability to appoint a new DC Secretary. In addition, the amendments incorporate previous amendments made to the rules in April 2018.

Key Changes

Amendments to Section 1.8(b) and 1.11(e) to extend the deadline for signing the Standard Agreement and allowing  a DC participant to be selected as a replacement institution after it signs the then current Standard Agreement.

Key Changes

Amendments to the Standard Reference Obligation Rules (Schedule 4 to the DC Rules) for the purposes of selecting/replacing Standard Reference Obligations for 2014 Transactions incorporating the Senior Non-Preferred Supplement.

Key Changes

Revised to add new Schedule 6 to the DC Rules requiring DC firms to represent in the Standard Agreement that they have various written policies or procedures relating to their DC activities, related amendments to the Standard Agreement provision in Section 1.8(b), and new information and record-keeping obligations regarding individuals participating in DC meetings.

Key Changes

Revised to reflect changes to the Standard Reference Obligation Rules (Schedule 4 to the DC Rules) and include the newly-introduced Package Observable Bond Rules that will be appended to the DC Rules as Schedule 5.

Key Changes

Revised to reflect the 2014 ISDA Credit Derivatives Definitions, including the Standard Reference Obligation Rules.

Key Changes

Revised and consolidated version of the DC Rules incorporating: (i) Amendments to DC Rules relating to publication of meeting statements (published August 17, 2012); (ii) Amendments to DC Rules relating to Cleared Reference Entities (published September 9, 2012); (iii) Amendment of DC Rules relating to List Review Date timing (published February 20, 2013). Please see below for further details in respect of such Amendments. In addition, the revised and consolidated version of the DC Rules contains amendments made necessary by the publication of the CCP Data Guidelines by the DCs on Friday March 28, 2014.

Key Changes

Amendments to provide that the timing of steps in determining members of the DCs on each List Review Date will be determined according to London business days as well as New York business days.

Key Changes

Amendments to provide that a question submitted to the DC by an Eligible CCP and relating to an Eligible Cleared Reference Entity will be automatically accepted by the DC and can only be dismissed by the DC in certain circumstances. Includes a form of Eligible CCP Certification Letter for firms to become Eligible CCPs.

Key Changes

Amendments to provide for statements to be published following DC meetings, describing the issue(s) considered during the meeting, the resolution of those issue(s) (if any) and the next steps of the relevant DC.

Key Changes

Amendments to add a new Section 5 of the DC Rules (July 11, 2011 Version) dealing with US Municipal Reference Entities. These amendments have been prepared to reflect the publication of the 2012 ISDA U.S. Municipal Reference Entity CDS Supplement. The amendments include special rules for eligibility for voting on questions relating to US Municipal Reference Entities and holding of Auctions relating to US Municipal Reference Entities.

Key Changes

Revised version of the DC Rules incorporating amendments to facilitate CCP observer participation in the DCs.

Key Changes

Revised version of the DC Rules (a) implementing the June 11, 2010 Amendments and (b) making a number of clarificatory amendments in respect of, inter alia, the following: (i) the amount of information that can be provided by the DC Secretary/DTCC to institutions selecting between being a Global Dealer Consultative Member and a Regional Dealer Consultative Member; (ii) that if a Non-dealer Voting Member currently serving on the DCs is again selected as a Non-dealer Voting Member, it shall be designated as a First Term Non-dealer, Second Term Non-dealer or Third Term Non-dealer, as applicable, based on its current designation; (iii) determinations for the Relevant Transaction Types; (iv) Quorum, Participation and Voting Procedures for a Convened DC; (v) Resolutions of Convened DCs; and (vi) certain definitions.

Key Changes

Amendment to the replacement provisions of the DC Rules (December 18, 2009 Version) that would apply if a Replacement DC Member has to be selected in respect of a DC Member between (a) the List Review Date on which another Participating Institution has been selected to ultimately replace such DC Member at the end of such DC Member’s term on a DC and (b) the expiration date of such DC Member’s term on a DC.

N.B. Until a new version of the DC Rules is published, the DC Rules (December 18, 2009 Version) are to be read in conjunction with these June 2010 Amendments.

Key Changes

Revised version of the DC Rules (a) implementing the October 2009 Amendments and (b) making a number of clarificatory amendments in respect of, inter alia, the following: (i) material errors in DTCC Dealer Lists; (ii) the consequences of missing DC meetings vs missing DC votes; (iii) timings and quorums for official DC meetings; (iv) when to hold auctions and auction participation by DC Dealer Members; (v) formation of legal subcommittees; (vi) External Review provisions; and (vii) introduction of public comment period in respect of amendments to the DC Rules.

Key Changes

General Interest Question – amendments to the DC Rules (July 24, 2009 Version) to allow questions to be raised to the DC by any Eligible Market Participant without attribution subject to certain provisions.

Key Changes

Implementation of the Small Bang Protocol changes.

Key Changes

Original version of DC Rules.