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{{ | {{csaanat|Equivalent Credit Support|1995}} | ||
'''{{t|Trick for young players}}''': “{{csaprov|Equivalent Credit Support}}” is meant only to capture assets which are [[fungible]] with assets forming part of posted {{csaprov|Credit Support Balance}} (exactly the same ISIN) – the point of “equivalence” is to buttress the {{csa}}’s [[title transfer]] analysis by allowing return of a security which isn’t the exact security that was delivered in the first place, but another one from the same issue. | '''{{t|Trick for young players}}''': “{{csaprov|Equivalent Credit Support}}” is meant only to capture assets which are [[fungible]] with assets forming part of posted {{csaprov|Credit Support Balance}} (exactly the same ISIN) – the point of “equivalence” is to buttress the {{csa}}’s [[title transfer]] analysis by allowing return of a security which isn’t the exact security that was delivered in the first place, but another one from the same issue. | ||
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I have come across a couple of instances (in {{tag|OTC Clearing}}/{{tag|CCP}} space) where the {{tag|CSA}} definition of “{{csaprov|Equivalent Credit Support}}” has been modified to capture not just fungible securities of the same Series/[[ISIN]], but “similar ones” – same issuer but different maturity, and under a different ISIN etc. | I have come across a couple of instances (in {{tag|OTC Clearing}}/{{tag|CCP}} space) where the {{tag|CSA}} definition of “{{csaprov|Equivalent Credit Support}}” has been modified to capture not just fungible securities of the same Series/[[ISIN]], but “similar ones” – same issuer but different maturity, and under a different ISIN etc. | ||
This may have been based on a misapprehension that | This may have been based on a misapprehension that “{{csaprov|Equivalent Credit Support}}” is already intended to allow redelivery of ''non''-[[fungible]] securities of a similar type, and the modification is only clarificatory. | ||
There may be a need for the | There may be a need for the “''similar'' securities” concept in the [[OTC to CCP]] space, but we should call it something else – perhaps “Similar Credit Support” – to differentiate it from “{{csaprov|Equivalent Credit Support}}” which is still needed in the CSA to support the title transfer analysis. | ||