So, what does the Big Bang Protocol do?
The Supplement applies to transactions going forward, provided that they incorporate the Supplement. ISDA has published the Big Bang Protocol to enable market participants to eliminate distinctions in their book between transactions entered into before April 8, 2009 and those entered into on or after that date. Market participants, by adhering to the Protocol, agree to amend their existing credit derivative transactions with all other adhering parties to implement the amendments incorporated by the Supplement. Please note that certain existing transactions are not covered by the Protocol (see below) The entire Supplement (incorporation of the DC and its resolutions, Auction Settlement methodology and the Credit Event and Succession Event backstops) is made applicable to all Protocol Covered Transactions (see below) except that the Auction Settlement method will not apply to “Covered Non-Auction Transactions” (see below). The DC provisions of the Supplement are effective in respect of a
