Template:M comp disc EUA Annex Close-out Cost of Carry Rate
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The comparison between the drafting for Close-out Cost of Carry Rate and ordinary Cost of Carry Rate illustrates the extent to which standards slipped for this project:
It is here: comparison.
simplifying them down to idiomatic and consistent English, the differences appear to be as follows:
Cost of Carry Rate | Close-out Cost of Carry Rate |
---|---|
The Floating Rate between the scheduled Payment Date and the Delayed Payment Date if the Reset Date were the Delayed Payment Date and the Floating Rate Option were “EUR-EONIA-OIS-COMPOUND”}} | The Floating Rate between the scheduled Payment Date and the Early Termination Date if the Reset Date were the Final Delivery Date and the Floating Rate Option were “EUR-EONIA-OIS-COMPOUND”}} |
So the differences are only the length of the period (and this is really a mutatis mutandis sort of thing: For a Suspension Event, the delay comes, QED, to an end earlier than for a Failure to Deliver); and the Reset Date (ie the date you determine the Floating Rate), and that also is a mutatis mutandis thing, seing as the rate is determined not at the beginning of the period but its end, and you don’t know how long the period will be.