Parker,
The cord is actually the lanyard that is unique in the fact that it can be secured (as pictured) and easily released when the user is ready to use it. Hope that makes sense.
Here is a bit more on the sheath as well (from G&G Website);
"Because the blade itself is symmetrical as well as the sheath, there is no wrong way to put the knife in its sheath. In its belt-carry configuration it can be worn on either the right or the left side without making adjustments. The blade retention system allows for upside-down carry by utilizing the elastic properties of the urethane sheath. The blade is captured securely by its profile within the blade cavity of the sheath until needed. It can be quickly and quietly withdrawn at anytime by gripping the handle and pushing off against the sheath with the thumb. For urban carry, or concealed carry, the sheath can be detached from the belt loop part by removing the pull pin and sliding the sheath up and out of the sheath loop. By threading a neck chain through the pull-pin hole, the sheath can be worn upside down around the neck. Due to the smooth, rounded contours and soft-to-the-touch surface, it can ride comfortably against the skin under a shirt. When wearing a jacket the sheath can be rigged to ride under an arm and out of sight."
