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Inter-affiliate ISDA negotiation: Difference between revisions
Inter-affiliate ISDA negotiation (view source)
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''With apologies to [http://www.gutenberg.org/files/1023/1023-h/1023-h.htm Charles Dickens]'' | ''With apologies to [http://www.gutenberg.org/files/1023/1023-h/1023-h.htm Charles Dickens]'' | ||
The idea first struck Wickliffe Hampton’s London trading desk that it should hedge its own [[debt value adjustments]] by laying them off to its German affiliate, Wickliffe Hampton Deutschland GmbH, as it then was, in 1996. A quick conversation between the desks settled that this might be a mutually beneficial arrangement — ''Deustchland'' had its own, own-credit risk to manage, and couldn’t they swap them? — and the transaction management process was invoked to put in place the necessary contract documentation, a {{1992ma}}, in place and the pair of affilates could set about scratch each others’ revenue-stating backs cheaply and the for the hereafter. | |||
On such an afternoon some score of members of the “Contract Negotiation Specialists Group”, as it is for the time being known, are mistily engaged in one of the ten thousand stages of an endless cause, tripping one another up on the slippery slope of [[precedent]], groping knee-deep in [[Escalation|escalations]], running their heads against unpunctuated walls of words and making a great pretence of commercial point and counterpoint, as players in a cosmic comedy might. | On such an afternoon some score of members of the “Contract Negotiation Specialists Group”, as it is for the time being known, are mistily engaged in one of the ten thousand stages of an endless cause, tripping one another up on the slippery slope of [[precedent]], groping knee-deep in [[Escalation|escalations]], running their heads against unpunctuated walls of words and making a great pretence of commercial point and counterpoint, as players in a cosmic comedy might. | ||
On such an afternoon the various [[paralegal]]s, [[negotiator]]s, [[ | On such an afternoon the various [[transaction manager]]s [[paralegal]]s, [[negotiator]]s, [[legal process outsourcer]]s, [[credit officer]]s in the cause, most of whom have inherited these roles from a predecessor who also made a living out of it, ought to be — as are they not? — arranged in a line, with [[Side letter|side-letter]]s, [[Margin lock-up|margin lock-ups]], [[Credit support document|credit support documents]], [[SFTR disclosures|title-transfer collateral arrangement disclosures]], [[Threshold Amount - ISDA Provision|Cross Default thresholds]], [[Additional Termination Event - ISDA Provision|Additional Termination Events]], fee schedules, [[conditions precedent]], [[conditions subsequent]], [[Authorised signatory lists|authorised signatory lists]], audited financial statements, mountains of costly nonsense all, piled before them. | ||
Well may the commercial objective be dim; well may the fog of war saturate the recycled tropes have grown calcific through time-tested abeyance, their original purpose now so encrusted in soporific text it can not escape, and no [[negotiator]] has the disposition, let alone a mandate, let alone the ''fortitude'', to go in after it with the hammer and chisel it deserves. Instead, countless [[disempowered]] agents will lay yet more silt upon the accretive communiques by which they relay their halting progress back to countless [[disempowered]] superiors, bewildering may the obstacles to [[Consensus ad idem|consensus]] described within them be that they may pass uncomprehended and therefore unresolved amongst those occupying the higher rungs whose designated role is adjudication; well may we uninitiated from the streets, were we yet allowed to slip those security-controlled doors, gather up a printed sheaf and peruse its labyrinthine figures, be deterred from going on by its owlish aspect and by the simple acreage of black 11 point Times New Roman on white on a scale that presents as [[entropy|entropic]] blur, an invariant shade of grey that crisply snuffs what wick the lantern of curiosity might ever have possessed. | Well may the commercial objective be dim; well may the fog of war saturate the recycled tropes have grown calcific through time-tested abeyance, their original purpose now so encrusted in soporific text it can not escape, and no [[negotiator]] has the disposition, let alone a mandate, let alone the ''fortitude'', to go in after it with the hammer and chisel it deserves. Instead, countless [[disempowered]] agents will lay yet more silt upon the accretive communiques by which they relay their halting progress back to countless [[disempowered]] superiors, bewildering may the obstacles to [[Consensus ad idem|consensus]] described within them be that they may pass uncomprehended and therefore unresolved amongst those occupying the higher rungs whose designated role is adjudication; well may we uninitiated from the streets, were we yet allowed to slip those security-controlled doors, gather up a printed sheaf and peruse its labyrinthine figures, be deterred from going on by its owlish aspect and by the simple acreage of black 11 point Times New Roman on white on a scale that presents as [[entropy|entropic]] blur, an invariant shade of grey that crisply snuffs what wick the lantern of curiosity might ever have possessed. | ||