82,891
edits
Market Quotation - 1992 ISDA Provision: Difference between revisions
Market Quotation - 1992 ISDA Provision (view source)
Revision as of 17:23, 29 July 2019
, 29 July 2019no edit summary
Amwelladmin (talk | contribs) No edit summary |
Amwelladmin (talk | contribs) No edit summary |
||
| Line 1: | Line 1: | ||
{{isda92anat|Market Quotation}} | {{isda92anat|Market Quotation}} | ||
{{isdacomparison}} | {{isdacomparison}} | ||
If it weren’t so long ago, you would honestly say this ludicrous {{isdaprov|Market Quotation}} and {{isdaprov|Loss}}, and {{isdaprov|First Method}} and {{isdaprov|Second Method}} confection was designed with the sole purpose of keeping [[negotiator]]s in [[tedious]] employment. | |||
{{means}} | {{means}} | ||
*'''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}}. | ||
*'''Will there ever ''be'' any quotations?''': No, which is why you need to note that the definition of {{isdaprov|Settlement Amount}} defaults to {{isdaprov|Loss}} when, as surely they will, every {{isdaprov|Reference Market-maker}} respectfully declines to take your call. | |||
===Relationship to {{csaprov|Exposure}} under the {{csa}}=== | ===Relationship to {{csaprov|Exposure}} under the {{csa}}=== | ||