Template:M summ IETA Suspension Event: Difference between revisions
Amwelladmin (talk | contribs) Created page with "{{ietacomp}} The odd thing is that while the Suspension Events are virtually identical between the {{ietama}} and {{emissionsannex}}, their Settlement Disruption Event regimes could hardly be more different — in that the ISDA annex has one, and the IETA doesn’t. ===Process=== Governed by Clause 13.4:<br> (a) Affected party gives notice. <br> (b) Obligations are suspended until the relevant piece of infrastructure is functioning again, after which there is a 10 {{ieta..." |
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The odd thing is that while the Suspension Events are virtually identical between the {{ietama}} and {{emissionsannex}}, their Settlement Disruption Event regimes could hardly be more different — in that the ISDA annex has one, and the IETA doesn’t. | The odd thing is that while the Suspension Events are virtually identical between the {{ietama}} and {{emissionsannex}}, their Settlement Disruption Event regimes could hardly be more different — in that the ISDA annex has one, and the IETA doesn’t. | ||
===Process=== | ===Process=== | ||
Governed by Clause 13.4:<br> | Governed by Clause {{ietaprov|13.4}}:<br> | ||
(a) Affected party gives notice. <br> | (a) Affected party gives notice. <br> | ||
(b) Obligations are suspended until the relevant piece of infrastructure is functioning again, after which there is a 10 {{ietaprov|Delivery Banking Day}}s [[grace period]] — which seems rather long, truth be known, but is truncated to 3 business days before any intervening {{ | (b) Obligations are suspended until the relevant piece of infrastructure is functioning again, after which there is a 10 {{ietaprov|Delivery Banking Day}}s [[grace period]] — which seems rather long, truth be known, but is truncated to 3 business days before any intervening {{ietaprov|End of Validity Period Reconciliation Deadline}} — to resume <br> | ||
(c) There is a Cost of Carry adjustment reflecting the delay to the scheduled delivery date | (c) There is a {{ietaprov|Cost of Carry Amount}} adjustment reflecting the delay to the scheduled delivery date. | ||
(d) If you are suspended past the Long Stop Date — as for the {{emissionsannex}}, and arbitrary set of dates two or more years after the originally scheduled delivery dates — you put a line through the trade, but | (d) If you are suspended past the {{ietaprov|Long Stop Date}} — as for the {{emissionsannex}}, and arbitrary set of dates two or more years after the originally scheduled delivery dates — you put a line through whatever obligations are left of the trade, but don’t have to return amounts or deliveries already made (to say nothing of collateral — though possibly the return of collateral is implied by the revaluation of the net exposure under the {{ietama}}. Or might have been, were there a collateral annex to the {{ietama}}. <br> | ||
===And then I woke up ... ?=== | |||
And it was all a dream, yes. See the premium section. | |||
Revision as of 13:05, 11 July 2023
IETA Master Agreement versus ISDA Emissions Annex
The odd thing is that while the Suspension Events are virtually identical between the IETA Master Agreement and ISDA EU Emissions Annex, their Settlement Disruption Event regimes could hardly be more different — in that the ISDA annex has one, and the IETA doesn’t.
Process
Governed by Clause 13.4:
(a) Affected party gives notice.
(b) Obligations are suspended until the relevant piece of infrastructure is functioning again, after which there is a 10 Delivery Banking Days grace period — which seems rather long, truth be known, but is truncated to 3 business days before any intervening End of Validity Period Reconciliation Deadline — to resume
(c) There is a Cost of Carry Amount adjustment reflecting the delay to the scheduled delivery date.
(d) If you are suspended past the Long Stop Date — as for the ISDA EU Emissions Annex, and arbitrary set of dates two or more years after the originally scheduled delivery dates — you put a line through whatever obligations are left of the trade, but don’t have to return amounts or deliveries already made (to say nothing of collateral — though possibly the return of collateral is implied by the revaluation of the net exposure under the IETA Master Agreement. Or might have been, were there a collateral annex to the IETA Master Agreement.
And then I woke up ... ?
And it was all a dream, yes. See the premium section.