Template:M gen 2002 ISDA 2(a): Difference between revisions
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What better cue could there be for opposing combatants leap into their trenches, and thrash out this kind of language? | What better cue could there be for opposing combatants leap into their trenches, and thrash out this kind of language? | ||
Less patient types might | Less patient types — like yours truly — might wish to read all of that into the still, small voice of calm of the word “deliver” in the first place. What else could it realistically mean, but to deliver outright, and free of competing claims? It is bound up with implications about ''what'' you are delivering, and ''whose'' the thing is that you are delivering. It would be absurd to suppose one could discharge a physical delivery obligation under a swap by “delivering” an item to which one had no title at all: it is surely implicit in the commercial rationale that one is transferring, outright, the value implicit in an asset and not just the formal husk of the asset itself, on terms that it may be whisked away at any moment. One is surrendering the implicit expense of the asset (in return for whatever your counterparty surrenders to you). As the bailiffs take leave of your counterparty with the asset you gave it strapped to their wagon, it would hardly do to say, “oh, well, I did deliver you that asset: it never said anywhere I had to have any proprietary interest in it, or that I was meant to be transferring any legal interest in it to you. It is all about my the act of delivery, I handed something to you, and that is that.” |