Template:Other CSA commentary: Difference between revisions
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===But what does it mean?=== | ===But what does it mean?=== | ||
This seems to be contemplating those who wished to “[[grandfather]]” {{isdaprov|Transaction}}s which were already on foot at the time the [[regulatory margin]] obligation came into force, but which therefore preceded it and were out of scope for it. Cue a monstrously painful ''dual''-CSA regime where new transactions were margined under a new, [[regulatory margin]]-compliant {{2016csa}}, and old ones were allowed to roll off on the clapped out (but somehow better'', right?) “other” {{1995csa}}. | This seems to be contemplating those who wished to “[[grandfather]]” {{isdaprov|Transaction}}s which were already on foot at the time the [[regulatory margin]] obligation came into force, but which therefore preceded it and were out of scope for it. Cue a monstrously painful ''dual''-CSA regime where new transactions were margined under a new, [[regulatory margin]]-compliant {{2016csa}}, and old ones were allowed to roll off on the clapped out (but somehow ''better'', right?) “other” {{1995csa}}. | ||
No doubt this made sound commercial sense in 2015, a few years later, for all bar those with 30 year inflation swaps on the books, all this {{csaprov|Other CSA}} chat is just barnacle-encrusted codified confusion for everyone. <br> | No doubt this made sound commercial sense in 2015, a few years later, for all bar those with 30 year inflation swaps on the books, all this {{csaprov|Other CSA}} chat is just barnacle-encrusted codified confusion for everyone. <br> | ||
Revision as of 12:02, 29 July 2019
But what does it mean?
This seems to be contemplating those who wished to “grandfather” Transactions which were already on foot at the time the regulatory margin obligation came into force, but which therefore preceded it and were out of scope for it. Cue a monstrously painful dual-CSA regime where new transactions were margined under a new, regulatory margin-compliant 2016 VM CSA, and old ones were allowed to roll off on the clapped out (but somehow better, right?) “other” 1995 CSA.
No doubt this made sound commercial sense in 2015, a few years later, for all bar those with 30 year inflation swaps on the books, all this Other CSA chat is just barnacle-encrusted codified confusion for everyone.