It is not known where Captain Giacchino has actually found this cutlass. Every time he tells the story, apart from it being quite confusing, the details are different. It is known however; that the cutlass seems to respond to how much danger the wielder is in, allowing him to parry attacks with even greater ease. How convenient it also is that the blade is somewhat longer than other pirate cutlasses, so Giacchino can keep a "sharp distance" from his enemies when needed.
Source: Warhammer Armies Project: Unofficial 9th Edition (v2.2)
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Magic Weapon
This cutlass grants Captain Giacchino the Parry (5+) special rule. For each wound suffered, he gains +1 to his Parry save.