Template:Credit support annex as a credit support document

The 1995 CSA is not a {{{{{1}}}|Credit Support Document}}...

Among the countless good examples of just how contrived, over-engineered, and fiddly for the sake of being fiddly the ISDA canon is, there is none better than the fact that a New York law Credit Support Annex is a {{{{{1}}}|Credit Support Document}}, while the English law equivalent is not. If that were not silly enough, according to User’s Guide best practice one should not designate the counterparties themselves as {{{{{1}}}|Credit Support Provider}}s to either, though it unclear which portion of the sky would fall in if one did.

A CSA is not a {{{{{1}}}|Credit Support Document}}, and you should not list it as one in {{{{{1}}}|Part 4}} of the {{{{{1}}}|Schedule}}, however satisfying it might be to do so. I mean it sounds like one, right? But no: the counterparty cannot be its own {{{{{1}}}|Credit Support Provider}}. The 1995 CSA is, rather, a {{{{{1}}}|Transaction}} under the ISDA Master Agreement. This is rather important to the whole issue of close-out netting. Deep ISDA lore.

But the 1994 NY CSA is a {{{{{1}}}|Credit Support Document}}: because it is a security financial collateral arrangement arrangement and not a title transfer collateral arrangement, transfer of credit support under a 1994 NY CSA does not change the net liabilities between the parties, the 1994 NY CSA (and its regulatory VM successor, the 2016 NY Law VM CSA is a {{{{{1}}}|Credit Support Document}} and not a transaction under the ISDA Master Agreement. But, because the parties cannot be their own {{{{{1}}}|Credit Support Provider}}s, there are no Credit Support Providers under a New York law CSA. It is like some kind of self-animating poltergeist. Fun, huh?