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And, as expected, here is ISDA with the most farcical of decisions. From  Reuters: "A new voluntary deal for holders of Greek debt to accept  deeper losses is unlikely to trigger a 'credit event' that would cause a  payout on default insurance, said a top lawyer at the International  Swaps and Derivatives Association. Greek bondholders face losses of 50  percent under a plan to lower the country's debt burden and contain the  euro zone's long-running debt crisis. The aim is to complete  negotiations on the package by the end of the year. But because participation in the deal is voluntary rather than forced, it would typically not trigger payment on CDS contracts.  "As far we can see it's still a voluntary arrangement and therefore we  are in the same position as we were with the 21 percent when that was  agreed," said David Geen, general counsel at derivatives body ISDA,  referring to an original deal proposed in July that involved smaller  bondholder losses. "The percentage (of losses), as far as the analysis  for CDS purposes goes, doesn't change things. typically a voluntary  arrangement won't trigger the CDS." Geen said the final decision on  whether a credit event has occurred rested with the ISDA determinations  committee, which would consider the issue when requested to do so by a  CDS market participant." The fact that the decision is "voluntary" under  duress from an entire political system which realizes its ponzi  structure is collapsing is seemingly irrelevant. Luckily, the market is  not all that stupid and the preliminary reaction is as expected, and to  paraphrase Willem Buiter, "Failure to trigger Greek sovereign  CDS when economic logic indicates this ought to occur would likely be  detrimental to financial stability." But that's irrelevant. The  EU has kicked the can down the road. Now it is literally a race for the  fade to discover who is first to realize that as Zero Hedge and now RBS  chimes in, "the EFSF is still too small to restore investor confidence."