Template:Isda 6(e) comp: Difference between revisions
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[[6(e)(i) - 1992 ISDA provision|The]] {{1992ma}} [[close-out]] methodology is hideous. They overhauled whole process of closing out an ISDA, soup to nuts, in the {{2002ma}}, and is now much more straightforward — as far as you could ever say that about {{icds}}’s output. But a large part of the fanbase — that part west of Cabo da Roca — sticks with the {{1992ma}}. Odd. | [[6(e)(i) - 1992 ISDA provision|The]] {{1992ma}} [[close-out]] methodology is hideous. They overhauled whole process of closing out an ISDA, soup to nuts, in the {{2002ma}}, and is now much more straightforward — as far as you could ever say that about {{icds}}’s output. But a large part of the fanbase — that part west of Cabo da Roca — sticks with the {{1992ma}}. Odd. | ||
Differences, in very brief: | |||
The {{1992ma}} has the infamous {{isda92prov|Market Quotation}} and {{isda92prov|Loss}} measures of value, and the perennially-ignored {{isda92prov|First Method}} and the more sensible {{isda92prov|Second Method}} means of evaluating the termination value of terminated {{{{{1}}}|Transactions}}. The {{2002ma}} has just the {{isdaprov|Close-out Amount}} to cover everything. So while the {{1992ma}} is far more elaborate and over-engineered, this is not to deny that the {{2002ma}} is elaborate or over-engineeered. | |||
The {{2002ma}} has a new Section {{isdaprov|6(e)(iv)}} dealing with {{isdaprov|Adjustment for Illegality or Force Majeure Event}}. This wasn’t needed in the {{1992ma}}, which didn’t have {{isdaprov|Force Majeure Event}} at all, and a less sophisticated {{isda92prov|Illegality}}. | |||
Revision as of 17:13, 1 January 2024
Compare with Close-out Amount under the 2002 ISDA
The 1992 ISDA close-out methodology is hideous. They overhauled whole process of closing out an ISDA, soup to nuts, in the 2002 ISDA, and is now much more straightforward — as far as you could ever say that about ISDA’s crack drafting squad™’s output. But a large part of the fanbase — that part west of Cabo da Roca — sticks with the 1992 ISDA. Odd.
Differences, in very brief:
The 1992 ISDA has the infamous Market Quotation and Loss measures of value, and the perennially-ignored First Method and the more sensible Second Method means of evaluating the termination value of terminated {{{{{1}}}|Transactions}}. The 2002 ISDA has just the Close-out Amount to cover everything. So while the 1992 ISDA is far more elaborate and over-engineered, this is not to deny that the 2002 ISDA is elaborate or over-engineeered.
The 2002 ISDA has a new Section 6(e)(iv) dealing with Adjustment for Illegality or Force Majeure Event. This wasn’t needed in the 1992 ISDA, which didn’t have Force Majeure Event at all, and a less sophisticated Illegality.