Template:M summ 2018 CSD 3(c): Difference between revisions

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{{quote|“... a [[3(c)(ii) - IM CSD Provision|posting]] obligation of a Chargor, the Base Currency Equivalent of an amount equal to the sum of the Independent Amounts (as defined in any Other CSA) applicable to the Chargor and any other amounts applicable to the Chargor (other than any amounts in respect of Margin Amount (IM) or Exposure), however described, intended by the parties to operate as an Independent Amount ...”}}
{{quote|“... a [[3(c)(ii) - IM CSD Provision|posting]] obligation of a Chargor, the Base Currency Equivalent of an amount equal to the sum of the Independent Amounts (as defined in any Other CSA) applicable to the Chargor and any other amounts applicable to the Chargor (other than any amounts in respect of Margin Amount (IM) or Exposure), however described, intended by the parties to operate as an Independent Amount ...”}}


This is the organisation that wants to standardise all financial products across the market, readers.
[[3(c) - IM CSD Provision|This]] is the organisation that wants to standardise all financial products across the market, readers.


What a world we live in.
What a world we live in.

Revision as of 16:36, 18 June 2021

“... a posting obligation of a Chargor, the Base Currency Equivalent of an amount equal to the sum of the Independent Amounts (as defined in any Other CSA) applicable to the Chargor and any other amounts applicable to the Chargor (other than any amounts in respect of Margin Amount (IM) or Exposure), however described, intended by the parties to operate as an Independent Amount ...”

This is the organisation that wants to standardise all financial products across the market, readers.

What a world we live in.

There are three approaches to regulatory initial margin, all of whom address the problem of how to play it when the amount your regulator says you have to take as initial margin differs from the amount you, in your infinite wisdom, were going to take anyway. The three was are:

The middle option is the sensible one: no customer with a heart and ears would dream of paying IM twice; no dealer would contemplate having non-regulatory IM held by a third party where it cannot get funding benefit from it.