Market Quotation - 1992 ISDA Provision: Difference between revisions

Market Quotation - 1992 ISDA Provision (view source)

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→‎Olly's plain English summary of the Market Quotation definition

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 Note that there is no concept of "Market Quotation" under 2002 ISDA. Instead, the concept of {{isdaprov|Close-out Amount}} applies to the valuation of terminated transactions.
-==Olly's plain English summary of the Market Quotation definition==
+{{means}}
-(liability for errors and omissions excluded)
+{{nuts|ISDA|Market Quotation}}
-“'''Market Quotation'''” is an amount determined by reference to quotations from {{isdaprov|Reference Market-maker}}s for the amount that the Reference Market Maker would be prepared to pay (in which case positive) or require to be paid (in which case negative), taking into account any existing {{isdaprov|Credit Support Document}}, to enter into a replacement transaction ''with the {{isdaprov|Non-affected Party}}'' preserving the economics of certain {{isdaprov|Terminated Transaction}}s (i.e., had they not been terminated early).
-{{isdaprov|Unpaid Amounts}} under the Terminated Transactions are excluded but obligations that would otherwise have been required after that Early Termination Date are included. Quotations must be given contemporaenously and soon as reasonably practicable after the Early Termination Date.
-If there are:
-*more than three quotations, the Market Quotation will be the average excluding the top and bottom quotations.
-*exactly three quotations , the Market Quotation will be the middle one.
-*fewer than three quotations, the Market Quotation will be deemed not to be determined.
 ==Commentary==