82,891
edits
Credit Support Annex: Difference between revisions
no edit summary
Amwelladmin (talk | contribs) (Created page with "The Credit Support Annex is a document appended to the {{isdama}} whcih deals with collateralisation of Swap Agreements. Delivery of credit support may be effected by pledge u...") |
Amwelladmin (talk | contribs) No edit summary |
||
| Line 2: | Line 2: | ||
If you are using the {{1995csa}} *(as is usual for English law governed {{isdama}}s), then you might find the [[CSA Anatomy]] a good place to start. | If you are using the {{1995csa}} *(as is usual for English law governed {{isdama}}s), then you might find the [[CSA Anatomy]] a good place to start. | ||
==={{tag|Title transfer}} vs. {{tag|Pledge}}=== | |||
This feels as good a time as any to raise the great subject of [[title transfer]] and [[pledge]]. In a {{nutshell}}: | |||
*'''Title Transfer''': The {{tag|English law CSA}} – outside the US, by far the most common type – is a [[title transfer]] document: | |||
**when securities delivered to a party they become the recipient's property absolutely | |||
**recipient does not hold them in custody for the transferor; | |||
**recipient has only an obligation to redeliver an equivalent security. | |||
**Therefore no {{tag|CASS}} question arises at any point. | |||
*'''Pledge''': The English Law CSD and New York Law CSA are “pledge” documents: | |||
**The transferor delivers the securities to the receipient to hold for the transferor – the transferor retains title | |||
**Recipient holds securities as transferor's custodian subject to a {{tag|security interest}} securing their obligation under the swap. | |||
**The custody arrangement only exists while recipient holds the security, not before. | |||
{{csaanatomy}} | {{csaanatomy}} | ||