FX Haircut Percentage - VM CSA Provision

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In a Nutshell Section 11(c)(v)(B):

Template:Nutshell 2016 CSA 11(c)(v)(B) view template

2016 VM CSA full text of Section 11(c)(v)(B):

11(c)(v)(B)FX Haircut Percentage” means, with respect to each party (as the Transferor) and item of Eligible Credit Support (VM), [[8%], unless the Eligible Credit Support (VM) or Equivalent Credit Support (VM) is in the form of cash [in a Major Currency] or is denominated in a currency that matches [an Eligible Currency], in which case the FX Haircut Percentage will be 0%.]

[As used above, “Major Currency” means any of: (1) United States Dollar; (2) Canadian Dollar; (3) Euro; (4) United Kingdom Pound; (5) Japanese Yen; (6) Swiss Franc; (7) New Zealand Dollar; (8) Australian Dollar; (9) Swedish Kronor; (10) Danish Kroner; (11) Norwegian Krone or any other currency specified below:

[SPECIFY]
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Related Agreements
Click here for the text of Section 11(c)(v)(B) in the 1995 English Law CSA
Click here for the text of Section 11(c)(v)(B) in the 2016 English Law VM CSA
Click here for the text of the equivalent, Section 13(c)(v) in the 2016 NY Law VM CSA
Comparisons
Template:Csadiff 11(c)(v)(B)
Template:Nycsadiff 13(c)(v)

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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.