Scope of this Annex and the Other CSA - VM CSA Provision: Difference between revisions
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{{csaanat|1(b)|2016 | {{csaanat|1(b)|2016}} | ||
{{csacapsule 1(b)|vmcsa}} | {{csacapsule 1(b)|vmcsa}} | ||
===Yes, the drafting’s magic, isn’t it?=== | |||
In the year of our Lord 2016, it is gratifying to see that the good people of {{tag|ISDA}} and their friends, relations, cherubim and seraphin, gog and magog etc., are all still as fearful of the language they learned at their mothers' knees as ever. “[[If any]]” makes four appearances in an eight line clause which doesn’t say much in the first place. | |||
{{Other CSA commentary}} | |||
=== Weird exclusion alert === | === Weird exclusion alert === | ||
What is with that exception at the end? Somehow [[initial margin]]<ref>“{{csaprov|Independent Amount}}” is just isdaspeak for [[initial margin]], remember</ref> for {{vmcsaprov|Covered Transaction}}s under ''this'' {{vmcsa}} might be documented under some {{vmcsaprov|Other CSA}}, when you have just gone to [[tedious]] lengths to exclude it from having any impact on this {{vmcsa}}? | What is with that exception at the end? Somehow [[initial margin]]<ref>“{{csaprov|Independent Amount}}” is just isdaspeak for [[initial margin]], remember</ref> for {{vmcsaprov|Covered Transaction}}s under ''this'' {{vmcsa}} might be documented under some {{vmcsaprov|Other CSA}}, when you have just gone to [[tedious]] lengths to exclude it from having any impact on this {{vmcsa}}? | ||
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Again, no. Our best guess is that this is ''deliberate''. Why? Because the {{vmcsa}} has no provision ''at all'' to deal with [[initial margin]]. It being assumed one has put a {{vmcsa}} in place only reluctantly, under protest because the meddling regulator told you to, and that you already had a {{csa}} which you were happy with, which ''did'' have some initial margin provisions. So, since your shiny new {{vmcsa}} has nothing to say about [[initial margin]] you continue to levy this under the existing {{vmcsaprov|Other CSA}}. | Again, no. Our best guess is that this is ''deliberate''. Why? Because the {{vmcsa}} has no provision ''at all'' to deal with [[initial margin]]. It being assumed one has put a {{vmcsa}} in place only reluctantly, under protest because the meddling regulator told you to, and that you already had a {{csa}} which you were happy with, which ''did'' have some initial margin provisions. So, since your shiny new {{vmcsa}} has nothing to say about [[initial margin]] you continue to levy this under the existing {{vmcsaprov|Other CSA}}. | ||
{{ref}} | {{ref}} |