Template:M summ 2002 ISDA 6(d): Difference between revisions

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Section {{isdaprov|6(d)}} is to do with working out the termination value of {{isdaprov|Transaction}}s for which you’ve just designated an {{isdaprov|Early Termination Date}}: in the {{1992ma}} using {{isda92prov|Loss}} and {{isda92prov|Market Quotation}}, and all that {{isda92prov|Second Method}} malarkey, and in  the {{2002ma}} the much neater and tidier {{isdaprov|Close-out Amount}} concept.
{{isda 6(d) summ|isdaprov}}
 
Generally, this is good [[fat tail|fat-tail]] paranoia material, so once upon a time parties used to negotiate it heavily. General [[SME]]-drain from the negotiation [[talent pool]] over the years due to vigorous [[Downgrading - waste article|down-skilling]] means people are less fussed about it now.
 
A popular parlour game among those [[negotiator|pedants]] who still insist on using the {{1992ma}}<ref>Or, in fairness, are ''forced to'' by some other pedant further up their chain, or a general institutional disposition towards pedantry.</ref> is to laboriously upgrade every inconsistent provision in the {{1992ma}} to the {{2002ma}} standard except the one provision of the {{1992ma}} they always liked — if  the pedant is in question is from the [[Treasury]] department, that will be the longer [[grace period]] in the {{isdaprov|Failure to Pay}}; if she is from [[Credit department|Credit]], it absolutely won’t be.
 
You might well ask why anyone would be so bloody-minded, but then you might well ask why anybody watches films from the ''Fast and Furious'' franchise. ''Because they can''. 
 
Or, possibly, to preserve the slightly more generous [[grace period]]s for {{isdaprov|Failure to Pay}}<ref>Three days in the {{1992ma}} versus one in the {{2002ma}}.</ref> and {{isdaprov|Bankruptcy}}<ref>Thirty days in the {{1992ma}} versus 15 in the {{2002ma}}.</ref> (in which case, you’d retrofit ''longer'' grace periods into the new version, wouldn’t you? But no).