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{{a|isda|{{image|Calculation Agent|png|Secret Co-Calculation Agent [[Georgia Apathy|Apathy]], in a still from Otto {{buchstein}}’s under-appreciated 1952 [[Opco Boone]] noir'' The [[Co-calculation agent|Co-Calculation Agent]] Who Loved Me''}}}}{{d|Calculation Agent|/ˌkælkjʊˈleɪʃən ˈeɪʤənt/|n}}One who ''calculates'' things on behalf of contracting counterparties. In theory, under any kind of contract, but in practice, mainly in the ISDA extended fan-fiction universe, and in the documentation of | {{a|isda|{{image|Calculation Agent|png|Secret Co-Calculation Agent [[Georgia Apathy|Apathy]], in a still from Otto {{buchstein}}’s under-appreciated 1952 [[Opco Boone]] noir'' The [[Co-calculation agent|Co-Calculation Agent]] Who Loved Me''}}}}{{d|Calculation Agent|/ˌkælkjʊˈleɪʃən ˈeɪʤənt/|n}}One who ''calculates'' things on behalf of contracting counterparties. In theory, under any kind of finance contract, but in practice, mainly in the ISDA and its extended fan-fiction universe ({{gmsla}}, {{gmra}}, {{efet}} etc), and in the documentation of [[debt securities]]. | ||
To be endlessly compared and contrasted with a “[[determination agent]]”, who ''determines'' things on behalf of contracting counterparties. Do “calculation” and “determination” differ? Not as far as this correspondent can see. You tend to say, perversely, that a Calculation Agent ''determines'' things, and a Determination Agent ''calculates'' things, but largely because elegant prose has a horror of repetition. But will that stop [[legal eagle|over-enthusiastic members of the bar]] waxing lengthily about how they ''do'' differ? it will not.<ref>Pedants will note the different roles played by the {{eqderivprov|Calculation Agent}} and the {{eqderivprov|Determining Party}} in the {{eqdefs}}.</ref> | To be endlessly compared and contrasted with a “[[determination agent]]”, who ''determines'' things on behalf of contracting counterparties. Do “calculation” and “determination” differ? Not as far as this correspondent can see. You tend to say, perversely, that a Calculation Agent ''determines'' things, and a Determination Agent ''calculates'' things, but largely because elegant prose has a horror of repetition. But will that stop [[legal eagle|over-enthusiastic members of the bar]] waxing lengthily about how they ''do'' differ? it will not.<ref>Pedants will note the different roles played by the {{eqderivprov|Calculation Agent}} and the {{eqderivprov|Determining Party}} in the {{eqdefs}}.</ref> | ||
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*{{eqderivprov|Determining Party}} | *{{eqderivprov|Determining Party}} | ||
{{ref}} | {{ref}} | ||
{{g}}As its name suggests, a [[calculation agent]] is a person appointed to calculate things, usually in the context of a [[master trading agreement]] like an {{isdama}}, a {{gmra}}, a {{gmsla}} or a {{csa}} or other [[credit support]] document. It will usually be one of the parties to the master agreement, and usually<ref>Like, ''always''.</ref> the [[broker dealer]] out of the two, if there is only one. | |||
But just who the [[calculation agent]] is, and how much discretion it has to determine the calculation without entertaining protest from the other party, is a matter that can occupy a [[Mediocre lawyer|derivatives lawyer]] for days on end. | |||
Spoiler: appointing each party as a [[co-calculation agent]] won’t work. | |||