Default under specified transaction: Difference between revisions

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-A [[default under specified transaction]], or "[[DUST]]", is a concept native to the {{isdama}} but which you may see in other Master Trading Documentation (but not all: it is not usual in a {{gmsla}} or a {{gmra}}), which provides a right to terminate a master trading agreement upon a default by your counterparty under another equivalent master agreement {{isdaprov|between you and that counterparty}}.
+{{g}}''For the {{isdama}} provision specifically see {{isdaprov|Default Under Specified Transaction}}''<br>
-It can be compared to [[cross default]], which allows you to terminate your master agreement when the counterparty defaults under indebtedness ''to a third party'' (not you).
+A [[default under specified transaction]], or “[[DUST]]”, is a concept native to the {{isdama}} but which you may see in other master trading documentation (but not a {{gmsla}} or a {{gmra}}). [[DUST]] gives a fellow the right to terminate the master trading agreement upon a default by {{sex|her}} [[counterparty]] under one or more transactions documented under ''different'' {{tag|Master Agreements}} ''between you and that same counterparty''.
-===Differences between cross default and DUST===
+Compare and contrast with [[cross default]], which allows you to terminate your master agreement when the counterparty defaults under indebtedness ''to a third party'' (not you).
-*Cross default generally references indebtedbess; DUST references bilateral derivative and trading transactions whcih are not in the nature of indebtedness
-*Cross default is only triggered once a certain threshhold is hit; DUST is triggered upon any breach;
-*Cross default references your counterparty owes to a third party; DUST references other obligations your counterparty owes you
-===See also===
+{{sa}}
 *[[Cross default]]
+*{{isdaprov|Default Under Specified Transaction}} (ISDA)
 *[[Event of default]]
+{{ref}}
-{{isdaanatomy}}