the isolation in the database is set per connection.
You can very well set it to UR (uncommited read).
Still - whenever one connection is changing data (doing an update/insert/delete) the isolation will be automatically increased to CS (cursor stability).
How this is handled will depend probably on your middleware. Whether you have methods to set this explicitely or you can submit statements like SET CURRENT ISOLATION UR
New connections have there own isolation - which should be UR (since I dunno your middleware, I can't say how it is explicitely done)
Somekind of isolation is always there - it does not just 'go away'.
Also with CS - when just reading data you won't end up with a dead lock. Parallel reads are always possible. With CS you more or less just have a share lock on the current row, nothing else.
For details see the documentation:
isolation levels:
http://publib.boulder.ibm.com/infoce...n/r0010944.htm
locks and concurrency control:
http://publib.boulder.ibm.com/infoce...n/c0005266.htm
lock compatibility:
http://publib.boulder.ibm.com/infoce...n/r0005274.htm
And in case of problems with locking, ask your middleware provider, how such cases are handled.