Calculation Amount - ISDA Definition

2021 ISDA Interest Rate Derivatives Definitions A Jolly Contrarian owner’s manual™ Go premium Overview — Summary — Premium — See also — Wikitext Crosscheck: →Calculation Amount in the 2006 ISDA definitions →Calculation Amount in the 2021 ISDA definitions Calculation Amount in a Nutshell™ The JC’s Nutshell™ summary of this term has moved uptown to the subscription-only ninja tier. For the cost of ½ a weekly 🍺 you can get it here. Sign up at Substack. You can even ask questions! Ask about it here. Original text 4.4 Calculation Amount. 4.4.1 Calculation Amount. “Calculation Amount” means the applicable Notional Amount or Currency Amount, as the case may be. 4.4.2 Notional Amount. “Notional Amount” means: (i) in respect of a Transaction involving one currency, other than an Option Transaction or a Transaction in which “Optional Early Termination” applies, the amount specified as such for the Transaction; and (ii) in respect of any Option Transaction or a Transaction to which “Optional Early Termination” applies: (a) if the Underlying Transaction or the Transaction, as appropriate, involves one currency, the amount specified as the Notional Amount of the Underlying Transaction or the Transaction, as appropriate; (b) if the Underlying Transaction or the Transaction, as appropriate, involves more than one currency, the Currency Amount in respect of the Buyer, in each case as reduced or increased in accordance with any relevant terms set out in the Confirmation or as set out in Section 11 (Mark-to-Market Currency Swaps) for amortizing or increasing the Notional Amount or Currency Amount, as applicable. 4.4.3 Currency Amount. “Currency Amount” means, subject to Section 11.4.9 (Variable Currency Amount), in respect of a Calculation Period for a Transaction involving more than one currency, the amount specified as such [for the] Transaction or a party. Template:M comp DI Resources and Navigation Template:Res DI

Comparisons

The 2006 ISDA Definitions treat each of the three definitions (Calculation Amount, Notional Amount and Currency Amount) as discrete things — albeit in successive paragraphs — while the 2021 ISDA Interest Rate Derivatives Definitions see them for what they are — subspecies of Calculation Amount — and roll them into a single paragraph.

Basics

Just imagine being the poor Aïessdiyé padawan tasked with redrafting a perfectly harmless — if faintly pointless — piece of orienting. Perhaps she felt honour-bound to convert it into a tract of overdetermined dreck. We will never know.

All it really achieves is, well, there’s this thing, and it might be a Notional Amount and it might be a Currency Amount, but either way, it’s a Calculation Amount. We think the 2006 version was nicer.

Premium content Here the free bit runs out. Subscribers click 👉 here. New readers sign up 👉 here and, for ½ a weekly 🍺 go full ninja about all these juicy topics👇 JC’s “nutshell” summary of the clause Background reading and long-form essays Template:DI Calculation Amount premium