Template:M summ IETA Suspension Event

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 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 the trade, but don't .