Loss - 1992 ISDA Provision: Difference between revisions
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===Duplication? What duplication? Ohhhh — ''that'' duplication.=== | ===Duplication? What duplication? Ohhhh — ''that'' duplication.=== | ||
The “except, so as to avoid duplication” coda ''looks'' to be a magnificent piece of ISDA discombobulation, because at first blush there doesn’t seem any risk of duplication: the excluded paragraphs all deal exclusively with {{isdama]}s where {{isdaprov|Market Quotation}}, and not {{isdaprov|Loss}}, applies. So this {{isdaprov|Loss}} definition seems entirely irrelevant ... until you notice that {{isdaprov|Settlement Amount}} used when valuing with Market Quotation defaults to {{isdaprov|Loss}}<ref>{{isdaprov|Loss}} ''not counting {{isdaprov|Unpaid Amounts}}'', that is — makes you weep doesn’t it?</ref> when, as most assuredly it will, {{isdaprov|Market Quotation}} turns out to be a totally impractical means of valuing a {{isdaprov|Terminated Transaction}}, since ''no-one will give you a price for a trade they can’t actually enter''. | |||
So it ''is'' a piece of massive discombobulation, but for a deeper reason than appears at first — namely, that {{isdaprov|Market Quotation}} is waste of space anyway. | |||
Whatever, it is simply magical that the ISDA drafting committee saw fit to treat {{isdaprov|Loss}}, but ''not'' {{isdaprov|Market Quotation}}, as being converted into a {{isdaprov|Termination Currency Equivalent}} and including {{isdaprov|Unpaid Amounts}}, especially as {{isdaprov|Loss}} is a fallback when {{isdaprov|Market Quotation}} fails to work, as inevitably it will. | Whatever, it is simply magical that the ISDA drafting committee saw fit to treat {{isdaprov|Loss}}, but ''not'' {{isdaprov|Market Quotation}}, as being converted into a {{isdaprov|Termination Currency Equivalent}} and including {{isdaprov|Unpaid Amounts}}, especially as {{isdaprov|Loss}} is a fallback when {{isdaprov|Market Quotation}} fails to work, as inevitably it will. |