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Market Quotation - 1992 ISDA Provision: Difference between revisions
Market Quotation - 1992 ISDA Provision (view source)
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{{isdacomparison}} | {{isdacomparison}} | ||
{{isdasnap|Market Quotation}} | {{isdasnap|Market Quotation}} | ||
{{means}} | {{means}} | ||
{{nuts|ISDA|Market Quotation}} | {{nuts|ISDA|Market Quotation}} | ||
==Commentary== | ==Commentary== | ||
*'''Pricing methodology''': Note that this quote comprises a portfolio of transactions on identical economic terms (including collateralisation), but between the {{isdaprov|Non-affected Party}} and the relevant market maker; i.e. you don't take into account the (almost inevitable) deterioration of the creditworthiness of the {{isdaprov|Affected Party}}. | *'''Pricing methodology''': Note that this quote comprises a portfolio of transactions on identical economic terms (including collateralisation), but between the {{isdaprov|Non-affected Party}} and the relevant market maker; i.e. you don't take into account the (almost inevitable) deterioration of the creditworthiness of the {{isdaprov|Affected Party}}. | ||
*'''Where there are fewer than three quotations''': By dint of the definition of {{isdaprov|Settlement Amount}}, if there are fewer that three quotations, or the determining party thinks the value provided by Market Quotation is commercially unrealistic, Market Quotation defaults to {{isdaprov|Loss}}. | *'''Where there are fewer than three quotations''': By dint of the definition of {{isdaprov|Settlement Amount}}, if there are fewer that three quotations, or the determining party thinks the value provided by Market Quotation is commercially unrealistic, Market Quotation defaults to {{isdaprov|Loss}}. | ||
{{isdaanatomy}} | {{isdaanatomy}} | ||