FX Haircut Percentage - CSA Provision: Difference between revisions

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{{fullanatopen|csa|{{ISDA English Law Credit Support Annex 2016 Value}}<br>
{{vmcsaspecific}}
:<small>[[Template:ISDA English Law Credit Support Annex 2016 Value|view template]]</small><br>
 
{{ISDA English Law Credit Support Annex 2016 FX Haircut Percentage}}<br>
:<small>[[Template:ISDA English Law Credit Support Annex 2016 FX Haircut Percentage|view template]]</small><br>
 
{{ISDA English Law Credit Support Annex 2016 11(c)(v)}}<br>
:<small>[[Template:ISDA English Law Credit Support Annex 2016 11(c)(v)|view template]]</small><br>
}}
Relevant to the calculation of {{csaprov|Value}} of a gentleman’s {{csaprov|Credit Support Balance}}. An observation one might make here is that if you have a cash-only {{tag|CSA}} and as long as you only accept the {{csaprov|Major Currencies}}, then this entire Rube Goldberg provision is unnecessary: The {{csaprov|Valuation Percentage}} will (most likely) be 100%, the {{csaprov|FX Haircut Percentage}} will be zero, so the definition of value that these definitions feed into amounts to the following:
:The amount (call it ''n'') ''multiplied by'' the sum of 100% ''minus'' zero%, ''or''
:''n'' * (100% - 0%), ''or''
:''n'' * 100%, ''or''
:''n''.
 
Sigh.