Independent Amount - CSA Provision: Difference between revisions
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{{csasnap|11(b)(iii)(A)}} | {{csasnap|11(b)(iii)(A)}} | ||
===Discussion=== | ===Discussion=== | ||
Particularly where underlying trades and markets are volatile, | Particularly where underlying trades and markets are volatile, expect to see a lot of customisation here. | ||
*The {{csaprov|independent amount}} might be calculated by reference to a given multiplier for a given asset (or type of assets - it is not uncommon to see tiering in FX transactions, for example, where {{isdaprov|Transaction}}s on currencies in the highest Tier might have a low (say 2%) multiplier, and {{isdaprov|Transaction}}s on currencies in the lowest Tier might carry a a 100% multiplier). | *The {{csaprov|independent amount}} might be calculated by reference to a given multiplier for a given asset (or type of assets - it is not uncommon to see tiering in FX transactions, for example, where {{isdaprov|Transaction}}s on currencies in the highest Tier might have a low (say 2%) multiplier, and {{isdaprov|Transaction}}s on currencies in the lowest Tier might carry a a 100% multiplier). | ||
*Especially where one counterparty is providing access to markets for the other party (so called [[synthetic prime brokerage]]) there may be a provision that the {{ca}} can adjust tiers, multipliers, and the assets which are elgible for each tier in its discretion, and with effect to existing as well as new transactions. This can have the effect of retroactively adjusting {{csaprov|Independent Amount}}s, in | *Especially where one counterparty is providing access to markets for the other party (so called [[synthetic prime brokerage]]) there may be a provision that the {{ca}} can adjust tiers, multipliers, and the assets which are elgible for each tier in its discretion, and with effect to existing as well as new transactions. This can have the effect of retroactively adjusting {{csaprov|Independent Amount}}s, in which case the difference can be called under the ordinary {{csaprov|Transfer}} provisions. | ||
===See also=== | ===See also=== | ||
Revision as of 14:44, 19 January 2016
{{ISDA English Law Credit Support Annex {{{2}}} Independent Amount}}
([[Template:ISDA English Law Credit Support Annex {{{2}}} Independent Amount|View Template]])
{{ISDA English Law Credit Support Annex {{{2}}} 11(b)(iii)(A)}}
([[Template:ISDA English Law Credit Support Annex {{{2}}} 11(b)(iii)(A)|View Template]])
Discussion
Particularly where underlying trades and markets are volatile, expect to see a lot of customisation here.
- The independent amount might be calculated by reference to a given multiplier for a given asset (or type of assets - it is not uncommon to see tiering in FX transactions, for example, where Transactions on currencies in the highest Tier might have a low (say 2%) multiplier, and Transactions on currencies in the lowest Tier might carry a a 100% multiplier).
- Especially where one counterparty is providing access to markets for the other party (so called synthetic prime brokerage) there may be a provision that the calculation agent can adjust tiers, multipliers, and the assets which are elgible for each tier in its discretion, and with effect to existing as well as new transactions. This can have the effect of retroactively adjusting Independent Amounts, in which case the difference can be called under the ordinary Transfer provisions.
See also
Replace with {{anat|csa}}