Who Determines If a Credit Event Has Officially Occurred?

The determination of a credit event is made by a "Determinations Committee" administered by the International Swaps and Derivatives Association (ISDA). This committee consists of voting members from major financial institutions that are active in the derivatives market.

When a potential credit event happens, market participants can submit a question to the committee. The committee then reviews the publicly available evidence and votes on whether a specific credit event, as defined in the ISDA Master Agreement, has officially occurred, which then triggers all relevant CDS contracts.