Claims for Damages and Compensation for Benefits Received - DRV-F Provision: Difference between revisions
Amwelladmin (talk | contribs) (Created page with "{{drvfanat|8}}") |
Amwelladmin (talk | contribs) No edit summary |
||
(2 intermediate revisions by the same user not shown) | |||
Line 1: | Line 1: | ||
{{drvfanat|8}} | {{drvfanat|8}} | ||
This nutshell is very nascent, ok, and I did it in a rush and I don't honestly understand what on Earth the {{drvccds}} were driving at here, if it isn't the innocent party can close out, get market quotes for replacement transactions, and can net them down, and if it was out of the money, it has to pay the balance to the defaulting party. It seems far more straightforward than this tortured, translated, mangled prose suggests. | |||
There’s an interesting commentary on the potentially non-zero-sum gaminess of finance here, in that the amount I am out of the money could be still more than the amount by which you are in the money on the same transactions. Unless you are valuing your won exposure using a different model to me, or maybe you are naturally hedged to currencies on some transactions which I am not — maybe you’re a German bank and I’m in Switzerland or something (help me I am reaching here) — it is odd to think the two values would not be the same. |
Latest revision as of 18:50, 20 January 2020
DRV for Derivatives and Futures Anatomy™
This is an informal, non-binding and, by the looks, not massively idiomatic translation of the Deutscher Rahmenvertrag für Finanztermingeschäfte. So treat it, and the JC's summary of and uninformed musings about it, with even more caution than normal.
view template
|
This nutshell is very nascent, ok, and I did it in a rush and I don't honestly understand what on Earth the Bankenverband’s crack drafting squad™ were driving at here, if it isn't the innocent party can close out, get market quotes for replacement transactions, and can net them down, and if it was out of the money, it has to pay the balance to the defaulting party. It seems far more straightforward than this tortured, translated, mangled prose suggests.
There’s an interesting commentary on the potentially non-zero-sum gaminess of finance here, in that the amount I am out of the money could be still more than the amount by which you are in the money on the same transactions. Unless you are valuing your won exposure using a different model to me, or maybe you are naturally hedged to currencies on some transactions which I am not — maybe you’re a German bank and I’m in Switzerland or something (help me I am reaching here) — it is odd to think the two values would not be the same.