Template:Csa Events of Default summ: Difference between revisions

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Those of ISDA credit support arrangements that are standalone {{isdaprov|Credit Support Document}}s<ref>In other words the {{nycsa}}, {{nyvmcsa}} and the {{imcsd}}, but ''not'' the {{csa} and the {{vmcsa}}.</ref> bake in a two {{nyvmcsaprov|Local Business Day}} [[grace period]]. This is one Local Business Day ''longer'' than the standard one LBD [[grace period]] baked into the {{2002ma}}, and one Local Business Day ''shorter'' than the standard 3 LBD [[grace period]] baked into the {{1992ma}}. Which is nice.  
====Grace periods====
Those of ISDA credit support arrangements that are standalone {{isdaprov|Credit Support Document}}s — the {{nycsa}}, {{nyvmcsa}} and the {{imcsd}}, but ''not'' the {{csa} and the {{vmcsa}} — bake in their own two {{{{{1}}}|Local Business Day}} [[grace period]] into their own customised Events of Default.  


The English law CSAs, by the way, don’t have this problem, since they are deemed to be {{isdaprov|Transaction}}s under the {{isdama}} itself, and therefore inherit the {{isdama}}’s Section {{isdaprov|5(a)(i)}} [[grace period]]s. Which, you would have thought, ''has'' to be the more preferable arrangement. But anyway, Americans (and those of you Brits with {{imcsd}}s, the same goes for you, thanks to Section {{imcsdprov|7}} I am afraid) '''your [[grace period]]s might well not match'''.
The {{1995csa}} and {{2016csa}}, being Transactions, don’t need to and inherit the [[grace period]]s for the {{isdaprov|Events of Default}} in the {{isdama}}.
 
That can, at the limit, create a dissonance for Americans and IM posters, as your CSA grace periods do not automatically track your ISDA ones. Two {{{{{1}}}|Local Business Day}}s is an {{isdaprov|LBD}} ''longer'' than the standard one LBD [[grace period]] in the {{2002ma}}, and an {{isdaprov|LBD}} ''shorter'' than the standard 3 {{isdaprov|LBD}} [[grace period]] baked into the {{1992ma}}.
 
Which is nice. This is not a problem for the English law Credit Support Annexes that are {{isdaprov|Transactions}}.

Revision as of 13:16, 9 May 2024

Grace periods

Those of ISDA credit support arrangements that are standalone Credit Support Documents — the 1994 NY CSA, 2016 NY Law VM CSA and the 2018 English law IM CSD, but not the {{csa} and the 2016 VM CSA — bake in their own two {{{{{1}}}|Local Business Day}} grace period into their own customised Events of Default.

The 1995 CSA and 2016 VM CSA, being Transactions, don’t need to and inherit the grace periods for the Events of Default in the ISDA Master Agreement.

That can, at the limit, create a dissonance for Americans and IM posters, as your CSA grace periods do not automatically track your ISDA ones. Two {{{{{1}}}|Local Business Day}}s is an LBD longer than the standard one LBD grace period in the 2002 ISDA, and an LBD shorter than the standard 3 LBD grace period baked into the 1992 ISDA.

Which is nice. This is not a problem for the English law Credit Support Annexes that are Transactions.

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