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This is how the timing works for {{1995csa}} transfers: | This is how the timing works for {{1995csa}} transfers: | ||
*'''Demand Date''': On any date, be it a {{csaprov|Local Business Day}} or not, (call it a “'''Demand Date'''”, but note | *'''Demand Date''': On any date, be it a {{csaprov|Local Business Day}} or not, (call it a “'''Demand Date'''”, but note per {{csaprov|2(a)}} or {{csaprov|2(b)}} it must be made “on or promptly following a {{csaprov|Valuation Date}}”), a party may demand a {{csaprov|Transfer}} under para {{csaprov|2(a)}} (for a {{csaprov|Delivery Amount}}) or {{csaprov|2(b)}} (for a {{csaprov|Return Amount}}). | ||
*'''{{csaprov|Valuation Time}} - {{csaprov|Exposure}}''': | *'''{{csaprov|Valuation Time}} - {{csaprov|Exposure}}''': The point at which the valuation is made is the {{csaprov|Valuation Time}}. This keys off the {{csaprov|Valuation Date}} (the {{1995csa}} allows you to choose either [[COB]] on the {{csaprov|Valuation Date}} or the {{csaprov|Local Business Day}} immediately ''before'' the {{csaprov|Valuation Date}}), and therefore not necessarily the {{csaprov|Demand Date}}. | ||
*'''{{csaprov|Valuation Time}} - {{csaprov|Eligible Credit Support}}''': Per | *'''{{csaprov|Valuation Time}} - {{csaprov|Eligible Credit Support}}''': Per para {{csaprov|2(a)}} the Transferor will transfer {{csaprov|Eligible Credit Support}} having a {{csaprov|Value}} equal to the {{csaprov|Delivery Amount}} ''as of the date of transfer'' — i.e., the {{csaprov|Settlement Day}}. Under the {{csaprov|Calculations}} provision all calculations of {{csaprov|Value}} happen at the relevant {{csaprov|Valuation Time}}. Fluctuations in value in the credit support actually delivered after that time won't invalidate the transfer amount, but they may mean a party can immediately call for more {{csaprov|Credit Support}} (that is have another {{csaprov|Demand Date}}). | ||
*'''{{csaprov|Transfer Date}}''': Under | *'''{{csaprov|Transfer Date}}''': Under para {{csaprov|3(a)}} ({{csaprov|Transfers}}) if the demand is received ''before'' the {{csaprov|Notification Time}} (by default, 1pm London time on a {{csaprov|Local Business Day}}) on that {{csaprov|Demand Date}}, the transfer will be made not later than close of business on the related{{csaprov|Settlement Day}}. If received ''after'' the {{csaprov|Notification Time}}, or at any time on a {{csaprov|Demand Date}} that isn’t a {{csaprov|Local Business Day}}), the transfer must be made by close of business on the {{csaprov|Settlement Day}} relating to the day (note: ''ordinary'' day, ''not'' {{csaprov|Local Business Day}}) after the {{csaprov|Demand Date}}. | ||
*'''{{csaprov|Settlement Day}}''': The {{csaprov|Settlement Day}} | *'''{{csaprov|Settlement Day}}''': The {{csaprov|Settlement Day}} for''any'' day (whether or not it is a {{csaprov|Local Business Day}}) is: | ||
**'''Cash''': for cash, the next {{csaprov|Local Business Day}} and, | **'''Cash''': for cash, the next {{csaprov|Local Business Day}} and, | ||
**''' | **'''Securities''': for securities, the {{csaprov|Local Business Day}} after the date on which a trade in the relevant security, if effected on the day in question, would have been settled in accordance with customary practice. | ||
====Questions==== | ====Questions==== | ||
*'''{{csaprov|Demand Date}} not a {{csaprov|Local Business Day}}''': What if the | *'''{{csaprov|Demand Date}} not a {{csaprov|Local Business Day}}''': What if the {{csaprov|Demand Date}} is not a {{csaprov|Local Business Day}}? E.g., what if it is received after the {{csaprov|Notification Time}} on a Friday, meaning the {{csaprov|Settlement Day}} takes place on the date on which a trade, effected on a Saturday, would have been settled in accordance with customary practice? | ||
**'''Securities''': For securities this is ok: a trade effected on a non-business day would be deemed to be effected on the next following Local Business Day anyway, so it would pick this up. | **'''Securities''': For securities this is ok: a trade effected on a non-business day would be deemed to be effected on the next following Local Business Day anyway, so it would pick this up. | ||
**'''Cash''': For cash, not so clear. | **'''Cash''': For cash, not so clear. | ||
*'''What happens if the value of the transferred credit support changes in value on the Settlement Date'''? | *'''What happens if the value of the transferred credit support changes in value on the Settlement Date'''? |