Resurrection of CDS small bang protocol to cater to new entrants

A decision by the International Swaps and Derivatives Association to reopen the small bang protocol for adherence will give smaller firms and new entrants to the market the opportunity to take advantage of its provisions, Isda officials and dealers have told Risk.

The small bang protocol introduced a new system of maturity limitation buckets to allow credit default swaps (CDSs) to be settled via auction following a restructuring credit event. During an initial adherence period, which ran from