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Template:M summ 2002 ISDA 8: Difference between revisions
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Essentially, an operational provision dealing with the practical problem that, when you are in the international markets, when you may be trading in different currencies, the counterparties may report their profit and loss in different currencies, and the individual legs of individual {{isdaprov|Transactions}} themselves may be denominated in different currencies. So it isn’t always clear what the basic currency in which the parties should resolve things, if they go wrong, ought to be. Enter Section {{isdaprov|8}}: | [[Contractual Currency - ISDA Provision|Essentially]], an operational provision dealing with the practical problem that, when you are in the international markets, when you may be trading in different currencies, the counterparties may report their profit and loss in different currencies, and the individual legs of individual {{isdaprov|Transactions}} themselves may be denominated in different currencies. So it isn’t always clear what the basic currency in which the parties should resolve things, if they go wrong, ought to be. Enter Section {{isdaprov|8}}: | ||
If you’re stupid enough to pay an amount you owe in the wrong currency, consider yourself at the mercy of your counterparty’s good graces when she goes about converting it — or electing not to convert it — see {{isdaprov|8(d)}}. Moral of story: ''discharge your obligations in the correct currency''. | If you’re stupid enough to pay an amount you owe in the wrong currency, consider yourself at the mercy of your counterparty’s good graces when she goes about converting it — or electing not to convert it — see {{isdaprov|8(d)}}. Moral of story: ''discharge your obligations in the correct currency''. | ||