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No Agency - ISDA Provision: Difference between revisions
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{{isdaanat|3(g)}} | {{isdaanat|3(g)}} | ||
You might like our articles about principal and agents, undisclosed | You might like our articles about [[principal]]s and [[agent|agents]], [[undisclosed agent]]s, [[undisclosed principal]]s and all that good stuff. | ||
In practice, many {{isdama}}s are entered by agents - investment managers and asset managers - on behalf of multiple underlying principals. [[Asset manager]]s often enter transactions in aggregate and only allocate them to underlying principals later in the day. This means that the broker will have a nervous few hours before it knows whom it is allowed to sue, though general principles | In practice, many {{isdama}}s are entered by agents - investment managers and asset managers - on behalf of multiple underlying principals. [[Asset manager]]s often enter transactions in aggregate and only allocate them to underlying principals later in the day. This means that the broker will have a nervous few hours before it knows whom it is allowed to sue, though general principles<ref>Geddit?</ref> of [[agency]] — in particular liability for an [[undisclosed principal]] —mean the [[agent]] is not quite so footloose and fancy-free as many seem to believe. | ||
In a nutshell it is not the end of the world if your counterpart refuses to renounce all agency, as long as you set up the accounts correctly with the underlying principals, and the firm has a robust approach to trade allocation. | In a nutshell it is not the end of the world if your counterpart refuses to renounce all agency, as long as you set up the accounts correctly with the underlying principals, and the firm has a robust approach to trade allocation. | ||
{{seealso}} | |||
*[[Undisclosed principal]] | |||
*[[Agent lender]] | |||
*{{Cobsprov|Agent as client}} | |||
{{ref}} | |||