Template:M intro isda ISDA purpose: Difference between revisions
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In this backgrounder the JC will look deeply into what is the basic point of an {{isdama }}. What does it do, why do you need one, and why can’t you just crack on and trade swaps without all this dusty paperwork? | In this backgrounder the JC will look deeply into what is the basic point of an {{isdama}}. What does it do, why do you need one, and why can’t you just crack on and trade swaps without all this dusty paperwork? | ||
Now this might seem like pocket-calculator stuff to you, my seasoned veterans, but it never hurts to stop and ponder | Now this might seem like pocket-calculator stuff to you, my seasoned veterans, but it never hurts to stop and ponder the ostensibly bleeding obvious. | ||
Going back to basics is bracing for the spirit. The JC encountered his first {{aies}} fully thirty years ago now — shout out the GFF — and | Going back to basics is bracing for the spirit. The JC encountered his first {{aies}} fully thirty years ago now — shout out to the GFF — and is still finding things out about it. Plenty did, as he prepared this essay. | ||
====On becoming a shibboleth==== | ====On becoming a shibboleth==== | ||
Through habit and inattention, we work ''around'' the [[easance]]s<ref>Yes, the JC made this word up. Think of it most nearly as the opposite of a nuisance.</ref> once we made to make our built environment better. What started out as a practical shortcut — the shortest possible route to market — can, through acquiescent disregard, become its own shibboleth: an ''obstacle'' on the road to transaction. | Through habit and inattention, we work ''around'' the [[easance]]s<ref>Yes, the JC made this word up. Think of it most nearly as the opposite of a nuisance.</ref> once we made to make our [[built environment]] better. What started out as a practical shortcut — the shortest possible route to market — can, through acquiescent disregard, become its own shibboleth: an ''obstacle'' on the road to transaction. | ||
So it is with the {{isdama}}. Once precisely a | So it is with the {{isdama}}. Once precisely a [[easance]] — an artefact for quickly tidying up and dispensing with formalities it would be laborious to repeat for every trade — it became a mountain of its own. Sure, you only need to climb it, from the bottom, once, that has become a three-month operation. You do not scale an ISDA master agreement the way Alex Honnold scales El Cap. You must take the entire modernist machinery of the multi-national with you. | ||
There are those who miss the good old days. Where bank legal departments have not legislated outright against them — most have — the temptation now is to ask “must we really have an ISDA? Would not a [[long-form confirmation]] do? | There are those who miss the good old days. Where bank legal departments have not legislated outright against them — most have — the temptation now is to ask “must we really have an ISDA? Would not a [[long-form confirmation]] do? |