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Template:Csa Custodian Provision summ: Difference between revisions
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Template:Csa Custodian Provision summ (view source)
Revision as of 17:18, 26 June 2024
, Wednesday at 17:18no edit summary
Amwelladmin (talk | contribs) (Created page with "A key difference between the {{sicsa}} and the {{ttcsa}} is that where you are pretending to hold subject to some security, the {{{{{1}}}|Pledgor}} ''might'' be inclined to want to deliver the credit support to a {{{{{1}}}|Custodian}} or escrow agent of some kind on the {{{{{1}}}|Secured Party}}’s behalf, rather than delivering outright to the {{{{{1}}}|Secured Party}} who might, you know, ''lose'' the collateral or something. A party to a {{ttcsa}} does not have thi...") |
Amwelladmin (talk | contribs) No edit summary |
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That being the case, the {{{{{1}}}|Custodian}} provision is almost always a dead letter. Quietly, I find myself wondering why I am even bothering to write all this. Even more so since the VM CSA has, for the largest part, transmogrified itself into an all-cash arrangement: you ''can’t'' custody cash: it ''immediately'' creates a debt obligation. This is deep financial lore. | That being the case, the {{{{{1}}}|Custodian}} provision is almost always a dead letter. Quietly, I find myself wondering why I am even bothering to write all this. Even more so since the VM CSA has, for the largest part, transmogrified itself into an all-cash arrangement: you ''can’t'' custody cash: it ''immediately'' creates a debt obligation. This is deep financial lore. | ||
If we are talking 2018 Regulatory IM CSA, on the other hand, it is a different story: {{{{{1}}}|Eligible Credit Support}} under that regime is inevitably non-cash, there is generally no right of [[rehypothecation]], and any such {{{{{1}}}|Posted Credit Support}} would be held by a third-party custodian or escrow agent. However, if you were doing that you would be under the {{ | If we are talking 2018 Regulatory IM CSA, on the other hand, it is a different story: {{{{{1}}}|Eligible Credit Support}} under that regime is inevitably non-cash, there is generally no right of [[rehypothecation]], and any such {{{{{1}}}|Posted Credit Support}} would be held by a third-party custodian or escrow agent. However, if you were doing that you would be under the {{imcsd}} form. So the {{{{{1}}}|Custodian}} provision remains all but a dead letter in the {{sicsa}}s. | ||