Independent Amount - CSA Provision: Difference between revisions

Independent Amount - CSA Provision (view source)

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 ===Discussion===
-If you look at it cold, this looks like a fixed currency amount that is paid at the beginning of a relationship, irrespective of how many transactions you may have on. But it will be often defined as "an amount agreed between the parties or as otherwise advised by Party X" - which rather kicks the issue in to touch.  In practice, it's likely to be articulated as a multiplier on notional, and will be payable at the start of each transaction, and may be adjusted on the fly.
+{{variationmargindescription}}
+If you look at it cold, this looks like a fixed currency amount that is paid at the beginning of a relationship, irrespective of how many {{isdaprov|Transactions}} you may have on. But it will be often defined as “an amount agreed between the parties or as otherwise advised by Party X”, which rather kicks the issue in to touch.  In practice, it’s likely to be articulated as a multiplier on notional, and will be payable at the start of each {{isdaprov|Transaction}}, and may be adjusted on the fly.
 Particularly where underlying trades and markets are volatile, expect to see a lot of customisation here.