Template:M summ 2002 ISDA 6(d): Difference between revisions

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Created page with "This clause has nothing to do with grace periods and everything to do with {{isdaprov|Loss}} and {{isdaprov|Market Quotation}} ({{1992ma}}) or {{isdaprov|Close-out Amount}..."
 
Replaced content with "{{isda 6(d) summ|isdaprov}}"
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This clause has nothing to do with [[grace period]]s and everything to do with {{isdaprov|Loss}} and {{isdaprov|Market Quotation}} ({{1992ma}}) or {{isdaprov|Close-out Amount}}s ({{2002ma}}) so expect to see it modified.
{{isda 6(d) summ|isdaprov}}
 
A popular parlour game amongst those [[negotiator|pedants]] who still insist on using the {{1992ma}}<ref>Or, in fairness, are ''forced to'' by some other pedant further up the chain, or a general institutional disposition towards pedantry.</ref> is to laboriously upgrade every inconsistent provision to the {{2002ma}} standard.
 
You might well ask why, but then you might well ask why anybody watches films from the ''Fast and Furious'' franchise. ''Because they can''.  Or, possibly, to preserve the slightly more generous [[grace period]]s for {{isdaprov|Failure to Pay}}<ref>Three days in the {{1992ma}} versus one in the {{2002ma}}.</ref> and {{isdaprov|Bankruptcy}}<ref>Thirty days in the {{1992ma}} versus 15 in the {{2002ma}}.</ref> (in which case, you’d retrofit longer grace periods into the new version, wouldn’t you? But no).

Latest revision as of 14:51, 7 November 2023

Section 6(d) is to do with working out the termination value of Transactions for which you’ve just designated an Early Termination Date (or, in the 1992 ISDA, the thing you wished they’d defined as an Early Termination Date).

Under the ’92 one uses Loss and Market Quotation, and all that Second Method malarkey, and in the 2002 ISDA the much neater and tidier Close-out Amount concept.

Generally, this is good fat-tail paranoia material, so once upon a time parties used to negotiate it heavily. General SME-drain from the negotiation talent pool over the years due to vigorous down-skilling means people are less fussed about it now.

A popular parlour game among those pedants who still insist on using the 1992 ISDA — or, in fairness, are forced to by some other pedant further up their chain, or a general institutional disposition towards pedantry — is to laboriously upgrade every inconsistent provision in the 1992 ISDA to the 2002 ISDA standard except the one provision of the 1992 ISDA they always liked — if the pedant is in question is from the Treasury department, that will be the longer grace period in the Failure to Pay; if she is from Credit, it absolutely won’t be.

You might well ask why anyone would be so bloody-minded, but then you might well ask why anybody watches films from the Fast and Furious franchise. Because they can.

Or, possibly, to preserve the slightly more generous grace periods for Failure to Pay (three days in the 1992 ISDA versus one in the 2002 ISDA) and Bankruptcy (thirty days in the 1992 ISDA versus 15 in the 2002 ISDA) in which case, you’d retrofit longer grace periods into the new version, wouldn’t you? But no).

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