Template:M summ 2016 CSA Notification Time

How the business days work for demands under a Credit Support Annex

1. Valuation and demand: A 2016 VM CSA may demand a 2016 VM CSA (Para 2016 VM CSA) or a 2016 VM CSA Para 2016 VM CSA) “on or promptly following a 2016 VM CSA”.
2. Valuation Date: A “2016 VM CSA” means a day on which banks are open in at least one 2016 VM CSA for each party.
   1. Each party can specify however many 2016 VM CSAs it likes.
   2. Tip: the fewer you specifiy, the greater the chance none will be open on a given day, and you will be excused from a margin call, so don’t overdo it. One should be ample.
3. Settlement: Any 2016 VM CSA or 2016 VM CSA must be settled (Para 2016 VM CSA) by the close of business on the 2016 VM CSA relating to the date such demand is received (if received before the 2016 VM CSA (spoiler: usually 11 am, noon or 1pm)), or the 2016 VM CSA relating to the day after the date such demand is received (if received after the 2016 VM CSA).
4. Regular Settlement Day: A “2016 VM CSA” means the same 2016 VM CSA — careful: as defined in the 1995 CSA, not the ISDA Master Agreement — on which the demand is made.
5. Local Business Day: A “2016 VM CSA” (under the 1995 CSA) means, in the case of notices, a day on which banks are open in the address for the notice most recently specified by the Recipient. What if demand is made on a day that is not a 2016 VM CSA? Simple: by dint of Section 12 of the ISDA Master Agreement, the notice will be deemed given on the next Local Business Day (as defined in the ISDA Master Agreement, not the 1995 CSA).

Easy.