Market Quotation - 1992 ISDA Provision: Difference between revisions

Market Quotation - 1992 ISDA Provision (view source)

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 *'''Pricing methodology''': Note that this quote comprises a portfolio of transactions on identical economic terms (including collateralisation), but between the {{isdaprov|Non-affected Party}} and the relevant market maker; i.e. you don't take into account the (almost inevitable) deterioration of the creditworthiness of the {{isdaprov|Affected Party}}.
 *'''Where there are fewer than three quotations''': By dint of the definition of {{isdaprov|Settlement Amount}}, if there are fewer that three quotations, or the determining party thinks the value provided by Market Quotation is commercially unrealistic, Market Quotation defaults to {{isdaprov|Loss}}.
+===Relationship to {{csaprov|Exposure}} under the {{CSA}}===
+Eagle-eyed observers will note that {{isdaprov|Market Quotation}} gets a name-check in the definition of {{csaprov|Exposure}} in the {{1995csa}}. So how does that work, you might ask, where you have a {{2002ma}} which doesn't ''have'' a definition of Market Quotation? Well, the answer lies in the [[2002 ISDA Master Agreement Protocol]]. As long as your counterparty has adopted that, then the provisions are converted over to 2002-speak as it were.
 {{isdaanatomy}}