Template:M gen 2002 ISDA 6(d)

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There is a bit of a chicken-and-egg situation here as, having servied your Section 6(a) notice designating an Early Termination Date at a point in the near future, you must now ascertain termination values for the Terminated Transactions as of that date, ahead of that date, and you can’t really work out their mark-to-market values at any time before that date, not being able to see into the future or anything.[1]

Anyway, that’s a conundrum for your trading people (and in-house metaphysicians) to deal with and it need not trouble we eagles of the law. For our purposes, the trading and risk people need to come up with Close-out Amounts[2] for all outstanding Transactions. Once they have done that you are ready for your Section 6(e) notice.

  1. ↑ Apologies if we are underestimating your faculties here by the way. But if you can, why did you trade with this counterparty in the first place? Huh?
  2. ↑ Or un-labelled equivalent for 1992 ISDAs).
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