Template:Nutshell 2018 CSD 3(c)(iii): Difference between revisions
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{{imcsdprov|3(c)(iii)}} '''{{imcsdprov|Margin Approach}}'''. | {{imcsdprov|3(c)(iii)}} '''{{imcsdprov|Margin Approach}}'''. Based on the “'''{{imcsdprov|Margin Approach}}'''” specified in Paragraph {{imcsdprov|13}} to govern the relationship between “'''{{imcsdprov|Margin Amount (IM)}}'''” and “'''{{imcsdprov|Margin Amount (IA)}}'''”, a {{imcsdprov|Chargor}}’s “'''{{imcsdprov|Credit Support Amount (IM)}}'''” on any {{imcsdprov|Calculation Date (IM)}} will be: | ||
{{Nutshell 2018 CSD 3(c)(iii)(A)}} | {{Nutshell 2018 CSD 3(c)(iii)(A)}} | ||
{{Nutshell 2018 CSD 3(c)(iii)(B)}} | {{Nutshell 2018 CSD 3(c)(iii)(B)}} | ||
{{Nutshell 2018 CSD 3(c)(iii)(C)}} | {{Nutshell 2018 CSD 3(c)(iii)(C)}} | ||
Latest revision as of 14:50, 19 April 2021
3(c)(iii) Margin Approach. Based on the “Margin Approach” specified in Paragraph 13 to govern the relationship between “Margin Amount (IM)” and “Margin Amount (IA)”, a Chargor’s “Credit Support Amount (IM)” on any Calculation Date (IM) will be:
- (A) If “Distinct Margin Flow (IM) Approach” applies: Max [Margin Amount (IM) - Threshold (IM), 0], and the Chargor’s Margin Amount (IA) posting obligation under any Other CSA will not be affected in any way.
- (B) If “Allocated Margin Flow (IM/IA) Approach” applies: Max [Margin Amount (IM) - Threshold (IM), 0] and its posting obligation for Margin Amount (IA) under any Other CSA will be reduced by that Credit Support Amount (IM) (subject to a minimum of zero).
- (C) If “Greater of Margin Flow (IM/IA) Approach” applies: Max [Max [Margin Amount (IM) -Threshold (IM), Margin Amount (IA)], 0], and its posting obligation for Margin Amount (IA) under any Other CSA will be reduced to zero.