Template:Eta vs close-out amount

On the difference between an “Early Termination Amount” and a “Close-out Amount”

The 1992 ISDA features neither an ISDA or a Close-out Amount, which many would see as a regrettable oversight. The 2002 ISDA has both, which looks like rather an indulgence until you realise that they do different things.

A Close-out Amount is the termination value for a single {{{{{1}}}|Transaction}}, or a related group of {{{{{1}}}|Transaction}}s that a {{{{{1}}}|Non-Defaulting Party}} or {{{{{1}}}|Non-Affected Party}} calculates while closing out an 2002 ISDA, but it is not the final, overall sum due under the ISDA Master Agreement itself. Each of the determined Close-out Amounts summed with the various {{{{{1}}}|Unpaid Amount}}s to arrive at the Early Termination Amount, which is the total net sum due under the ISDA Master Agreement after the close-out process. (See Section {{{{{1}}}|6(e)(i)}} for more on that).