Template:Isda Affected Transactions summ: Difference between revisions

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Created page with "Note that for {{{{{1}}}|Additional Termination Events}} and {{{{{1}}}|Credit Event Upon Merger}}, all {{{{{1}}}|Transactions}} are automatically caught, and if you want to cap..."
 
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Note that for {{{{{1}}}|Additional Termination Events}} and {{{{{1}}}|Credit Event Upon Merger}}, all {{{{{1}}}|Transactions}} are automatically caught, and if you want to capture just ''certain'' {{{{{1}}}|Transactions}}, you'll need to tweak this definition too.  
Seeing how third party [[credit support]] generally works under an {{isdama}} — it only comes into play once {{{{{1}}}|Transaction}}s have been closed out, and there ''are'' no Transactions left, Affected or otherwise<ref>The notable exception being a [[New York law]] [[Credit Support Annex]] of course.</ref> this does seem a rather fussy detail; all the more so now in the age of regulatory [[variation margin]]. I mean, who provides [[credit support]] for individual {{isdaprov|Transaction}}s under a master agreement specifically designed to achieve cross-transactional [[closeout netting]]?
 
But why, really, would you want to capture just certain {{{{{1}}}|Transactions}}?
 
There is a lot more about how pointlessly over-engineered this clause is at the commentary to Section {{{{{1}}}|6(b)(iv)}}, the {{{{{1}}}|Right to Terminate}}.

Latest revision as of 16:13, 5 January 2024

Seeing how third party credit support generally works under an ISDA Master Agreement — it only comes into play once {{{{{1}}}|Transaction}}s have been closed out, and there are no Transactions left, Affected or otherwise[1] this does seem a rather fussy detail; all the more so now in the age of regulatory variation margin. I mean, who provides credit support for individual Transactions under a master agreement specifically designed to achieve cross-transactional closeout netting?

  1. ↑ The notable exception being a New York law Credit Support Annex of course.
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