FX Haircut Percentage - CSA Provision

2016 VM CSA Anatomy™ Go Premium In a Nutshell™ Section 11(c)(v): Template:Nutshell 2016 CSA 11(c)(v) view template 2016 VM CSA full text of Section 11(c)(v): Template:ISDA English Law Credit Support Annex 2016 11(c)(v) view template Related Agreements Click here for the text of Section 11(c)(v) in the 1995 English Law CSA Click here for the text of Section 11(c)(v) in the 2016 English Law VM CSA Click here for the text of the equivalent, Section Value in the 2016 NY Law VM CSA Comparisons Template:Csadiff 11(c)(v) 2016 VM CSA and 2016 NY Law VM CSA: click for comparison Resources Full wikitext | Nutshell wikitext Navigation 1 (Interpretation) | 2 (Credit Support Obligations) | 3 (Transfers, Calculations and Exchanges) | 4 (Dispute Resolution) | 5 (Title Transfer etc) | 6 (Default) | 7 (Representation) | 8 (Expenses) | 9 (Miscellaneous) | 10 (Definitions) | 11 (Elections and Variables) Index: Click ᐅ to expand: 2016 VM CSA 2018 CSD 1995 CSA Comments? Questions? Suggestions? Requests? Insults? We’d love to 📧 hear from you. Sign up for our newsletter.

A provision that assuredly goes into the I’m sorry I asked category. Relevant to the calculation of Value of a gentleman’s Credit Support Balance. An observation one might make here is that if you have a cash-only CSA and as long as you only accept the Major Currencies, then this entire Rube Goldberg provision is unnecessary: The Valuation Percentage will (most likely) be 100%, the 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.