Settlement Day - VM CSA Provision

2016 ISDA Credit Support Annex (VM) (English law) A Jolly Contrarian owner’s manual™ Resources and navigation 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 Paragraph Settlement Day in a Nutshell™ Use at your own risk, campers! “Settlement Day” means, for any date: (i) for cash transfers, the next Local Business Day; and (ii) for securities transfers, the first Local Business Day after the date in which a securities trade made on that date would customarily settle (or, failing that, on the first Local Business Day after the date on which it is reasonably practicable to deliver the securities). view template Full text of Paragraph Settlement Day “Settlement Day” means, in relation to a date, (i) with respect to a transfer of cash or other property (other than securities), the next Local Business Day and (ii) with respect to a transfer of securities, the first Local Business Day after such date on which settlement of a trade in the relevant securities, if effected on such date, would have been settled in accordance with customary practice when settling through the clearance system agreed between the parties for delivery of such securities or, otherwise, on the market in which such securities are principally traded (or, in either case, if there is no such customary practice, on the first Local Business Day after such date on which it is reasonably practicable to deliver such securities). view template Comments? Questions? Suggestions? Requests? Insults? We’d love to 📧 hear from you. Sign up for our newsletter.

Content and comparisons

To be compared with a Regular Settlement Day, being the date on which a Transferee demands Credit Support. The 1995 CSA does not make this distinction.

Template

Summary

The Settlement Day does not do much lifting in the 2016 VM CSA — the heavy lifting role has been largely usurped by the new Regular Settlement Day.

Which is mighty confusing, since the “Regular Settlement Day” in the new VM CSA is the same as the “Settlement Day” in the old one, but there is also a “Settlement Day” in the new CSA, which isn’t anything like the old one and is really only there for voluntary exchanges of already collateral under 3(c) — hardly a big deal since you’ll mainly be posting cash anyway — and distributions of interest and income under 5(c)(i).

ISDA’s crack drafting squad™ no doubt had its priorities and imperatives to achieve here — who doesn’t? — but they don’t seem to have had much to do with helping beleaguered doc-jocks understand what is going on.

Template

See also

Regular Settlement Day

Template