Template:M comp disc IETA Force Majeure: Difference between revisions
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This is the {{ietama}}’s equivalent of a {{euaprov|Settlement Disruption Event}} in the {{emissionsannex}}. It is broadly the same, so you do wonder whose idea it was to call it something different. | [[Force Majeure - IETA Provision|This]] is the {{ietama}}’s equivalent of a {{euaprov|Settlement Disruption Event}} in the {{emissionsannex}}. It is broadly the same, so you do wonder whose idea it was to call it something different. | ||
Let us speculate: the IETA was written first, is independent of the {{isda}} universe, and for reasons best known to IETA’s {{Cds}}, they decided to call this a Force Majeure. Being beyond the reasonable control of the affected party this is not entirely unreasonable. | Let us speculate: the IETA was written first, is independent of the {{isda}} universe, and for reasons best known to IETA’s {{Cds}}, they decided to call this a Force Majeure. Being beyond the reasonable control of the affected party this is not entirely unreasonable. | ||
Revision as of 14:31, 11 July 2023
This is the IETA Master Agreement’s equivalent of a Settlement Disruption Event in the ISDA EU Emissions Annex. It is broadly the same, so you do wonder whose idea it was to call it something different.
Let us speculate: the IETA was written first, is independent of the ISDA universe, and for reasons best known to IETA’s crack drafting squad™, they decided to call this a Force Majeure. Being beyond the reasonable control of the affected party this is not entirely unreasonable.
ISDA’s crack drafting squad™ was, as usual, late to the “novel asset class” party and, as it couldn’t find a spot, decided to park its tanks on IETA’s lawn, borrowing much of the technolopgy wholesale but unable to call this event a Force Majeure because the ISDA Master Agreement already has a Force Majeure Event, this is quite different, and that would confuse people even beyond ISDA’s tolerance for confusing people.[1]
So ISDA’s crack drafting squad™ went with its product specific “stuff happens” label, Settlement Disruption Event.
- ↑ Seeing as the IETA Master Agreement borrows a bit of technology from the 1992 ISDA is is conceivable that IETA’s crack drafting squad™ didn’t realise there was a Force Majeure Event in the 2002 ISDA, as there was not one in the 1992 ISDA. I am guessing.