Market participants should note that the 2014 Definitions focus in particular on a Eurozone exit and specify which types of obligations are deliverable obligations if a redenomination-related credit event occurs, as well as the impact on any future credit events if a currency redenomination does not constitute a credit event.

The most significant changes represented by the new definitions are the introduction of (a) the Standard Reference Obligation, (b) the Governmental Intervention Credit Event, (c) Currency Redenomination provisions, (d) the Asset Package Delivery provisions and (e) the Financial Reference Entity Terms, and the replacement of the Succession Event with the Steps Plan.

Standard Reference Obligation The 2014 Definitions introduce the "Standard Reference Obligation" ("SRO").

Market participants should note that the new Asset Package Delivery provisions will apply to Sovereign CDS following a Restructuring Credit Event and financial Reference Entity CDS following a Restructuring or a Government Intervention Credit Event.

For Asset Package Delivery to be effective, the protection buyer must notify the protection seller of its intent to deliver an asset package in lieu of the prior or original deliverable obligation.

The deadline for adhering to the Protocol is September 12, 2014 and the Protocol will become effective between adhering parties on September 22, 2014.

The Protocol will apply to certain (but not all) existing credit derivative transactions (“CDS”) and will also apply to certain CDS entered into in the year following the effective date, to allow parties to continue using their existing documentation as updated by the Protocol as they transition to the 2014 Credit Derivatives Definitions (the “2014 Definitions”).

A currency redenomination will not by itself trigger a Governmental Intervention Credit Event unless other relevant events occur.

If a currency redenomination is not otherwise a credit event, the 2014 Definitions clarify that it is not considered a Failure-To-Pay Credit Event if a freely available market rate of conversion between the original currency and the redenominated currency existed at the time of the redenomination, unless the redenomination itself constitutes a reduction in the rate or amount of interest, principal or premium payable under any debt obligation of the Reference Entity that is unsubordinated to the Reference Obligation at the time of the redenomination.

The SROs will be published periodically on the SRO list on the ISDA website.

Market participants should note that (a) if an SRO is removed from the list, the transaction will be deemed to have no Reference Obligation until a new SRO is included in the SRO list and (b) all contracts that reference a Reference Entity not covered by the SRO List will be required to specify a Reference Obligation.

Market participants should note that a Government Intervention Credit Event can be triggered even if the government intervention is expressly contemplated by the terms of the Reference Obligation.