Template:Csa Valuation summ: Difference between revisions
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==== | ====Calculation/Valuation Date==== | ||
Each day on which you can expect to exchange [[variation margin]] under a Credit Support Annex, which is: | Each day on which you can expect to exchange [[variation margin]] under a Credit Support Annex, which is: | ||
{{l1}} | {{l1}} | ||
'''{{1994csa}} and {{1995csa}}''': Whatever you specified in your elections paragraph and, the older your document is, the more likely it is to be an arbitrary and quite unnervingly long period. <li> | '''{{1994csa}} and {{1995csa}}''': Whatever you specified in your elections paragraph and, the older your document is, the more likely it is to be an arbitrary and quite unnervingly long period. <li> | ||
'''{{2016nycsa}} and {{2016csa}}''': Unless otherwise specified in the elections paragraph, ''every'' day on which you’re both in the office in at least one of your {{{{{1}}}|Valuation Date Location}}s. ''Should'' the parties specify otherwise in their elections? No. Why would they? ''Will'' they? Experience suggests, for a dogged minority, they just might. Don’t be that guy. </ol> | '''{{2016nycsa}} and {{2016csa}}''': Unless otherwise specified in the elections paragraph, ''every'' day on which you’re both in the office in at least one of your {{{{{1}}}|Valuation Date Location}}s. ''Should'' the parties specify otherwise in their elections? No. Why would they? ''Will'' they? Experience suggests, for a dogged minority, they just might. Don’t be that guy. </ol> | ||
==== | ====Calculation/Valuation Time==== | ||
A bit of an evolution in the concept of the {{{{{1}}}Valuation Time}} between the OG and VM versions of the CSA. | A bit of an evolution in the concept of the {{{{{1}}}Valuation Time}} between the OG and VM versions of the CSA. | ||
In the OG | In the [[OG CSA]]s, the Valuation Time defaulted to one of close of business on the Valuation Date — which figures, intuitively — or close of business on the {{{{{1}}}|Local Business Day}} immediately before the Valuation Date — which doesn’t, as a matter of cold semantic logic, but okay, the time by reference to which you calculate a value, does not have to be on the same day that you actually calculate it, as long as it has already happened. Fine. When you think about it the {{{{{1}}}Valuation Time}} being at the ''close of business'' on a {{{{{1}}}Valuation Date}} implies that the point in the day at which you are actually ''performing'' your valuation calculations is, well, ''after'' closing time: the bell has rung and everyone has started drifting home. That doesn’t make a lot of sense either. But hey ho. | ||
In the | In the [[Modern CSA]]s the {{{{{1}}}Valuation Time}} is quite a lot looser. If you haven’t fiddled with it, the {{{{{1}}}Valuation Time}} is the {{{{{1}}}Valuation Agent}}’s normal time for calculating end-of-day valuations — which need not, therefore, be the actual end of the day — or any other commercially reasonable time “on the relevant day”. “Day”, not “date”, and not {{{{{1}}}Valuation Date}}, so it could still be the ''preceding'' day, but logically it doesn’t make a lot of sense (we think) to presume it could be ''afterwards''. | ||
====“Base Currency Equivalent of bid price”==== | ====“Base Currency Equivalent of bid price”==== | ||
It is not unknown to amend limb (ii) to include “the {{{{{1}}}|Base Currency Equivalent}} of the bid price obtained by the {{{{{1}}}Valuation Agent}} ''multiplied by the nominal amount of such security''”. | It is not unknown to amend limb (ii) to include “the {{{{{1}}}|Base Currency Equivalent}} of the bid price obtained by the {{{{{1}}}Valuation Agent}} ''multiplied by the nominal amount of such security''”. | ||