Triggering and settling credit derivatives

The occurrence of a credit event is not sufficient to trigger performance under a credit derivative — certain formalities must also be complied with. Since 2009, the majority of credit events are determined by the ISDA Credit Derivatives Determinations Committee (the DC). A credit event is triggered by raising a question with the DC or by sending a credit event notice to the other party. This guidance note describes the DC and describes the documentation that should be sent on the occurrence of a credit event.

See Triggering and settling credit derivatives.