A Step Further: NAFMII Publishes Pilot Credit Derivatives Rules and New Credit Derivatives Definitions

On 23 September 2016, the National Association of Financial Market Institutional Investors (“NAFMII”) published a set of pilot rules governing credit derivatives products (the “Pilot Rules”), a circular for each of the four specific types of credit derivatives products contemplated, and a set of credit derivatives key terms and application rules (the “2016 Definitions”) serving as product definitions for NAFMII credit derivative transactions. The publication of these documents was intended to revitalize the credit derivatives market in China, which was initially launched nearly six years ago in 2010.

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