Calculation agent: Difference between revisions
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As its name suggests, a calculation agent is a person appointed to calculate things, usually in the context of a | As its name suggests, a calculation agent is a person appointed to calculate things, usually in the context of a master trading agreement like an {{isdama}}, a {{gmra}}, a {{gmsla}} or a {{csa}} or other [[credit support]] document. It will usually be one of the parties to the master agreement, and usually<ref>Like, ''always''.</ref> the [[broker dealer]] out of the two, if there is only one. | ||
But just who the calculation agent is, and how much discretion it has to determine the calculation without entertaining protest from the other party, is a matter that can occupy a derivatives lawyer for days on end. | But just who the [[calculation agent]] is, and how much discretion it has to determine the calculation without entertaining protest from the other party, is a matter that can occupy a [[Mediocre lawyer|derivatives lawyer]] for days on end. | ||
Spoiler: appointing each party as a [[co-calculation agent]] won’t work. | Spoiler: appointing each party as a [[co-calculation agent]] won’t work. | ||
Revision as of 10:57, 27 March 2017
As its name suggests, a calculation agent is a person appointed to calculate things, usually in the context of a master trading agreement like an ISDA Master Agreement, a Global Master Repurchase Agreement, a 2010 GMSLA or a 1995 CSA or other credit support document. It will usually be one of the parties to the master agreement, and usually[1] the broker dealer out of the two, if there is only one.
But just who the calculation agent is, and how much discretion it has to determine the calculation without entertaining protest from the other party, is a matter that can occupy a derivatives lawyer for days on end.
Spoiler: appointing each party as a co-calculation agent won’t work.
References
- ↑ Like, always.