The International Swaps and Derivatives Association (ISDA) has published a proposal to create a new governance committee for the credit default swap (CDS) Determinations Committees (DCs), kicking off a wider set of amendments aimed at strengthening DC structure and integrity as market conditions evolve. The committee would be tasked with gathering market feedback and adopting rule changes affecting DC structure and operations, while being barred from participating in credit event determinations to preserve separation between decision-making and rule-setting. Under the proposal, the governance committee would have 15 to 20 senior, business-focused CDS market participants, comprising 10 sell-side members, five buy-side members, three central counterparty or index provider members, and two additional infrastructure providers. Rule changes that could impact live credit events would be prohibited, and any proposed change would be subject to market consultation before a governance committee vote; ISDA frames this as supporting efficiency and transparency in credit event determinations that underpin CDS clearing. ISDA indicated it will publish further proposals in the coming months, drawing on findings from a prior consultation run by Boston Consulting Group and recommendations developed by Linklaters in an independent review of DC composition, functioning, governance and membership.
ISDA 2025-05-08
International Swaps and Derivatives Association proposes governance committee to oversee CDS Determinations Committee rule changes
The International Swaps and Derivatives Association (ISDA) has proposed establishing a new governance committee for the credit default swap (CDS) Determinations Committees to enhance their structure and integrity. The committee, comprising 15 to 20 senior CDS market participants, would gather market feedback and adopt rule changes, excluding involvement in credit event determinations to maintain decision-making and rule-setting separation.