Calculation Agent: Difference between revisions

Calculation Agent (view source)

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 We sense there will be buyside legal-eagles out there who are not persuaded by this. We know there are, in fact: their Byzantine valuation dispute mechanisms pepper ISDA portfolios from New York to Tokyo. If you are one of them, here is a question: ''when did your client last actually invoke a dispute mechanism in anger?''
-How strongly each feels about its right to ''query'' or ''dispute'' the {{isdaprov|Calculation Agent}}’s determinations will depend on the sort of products they’re expecting to trade: [[FX]] and simple [[equity derivative|equity derivatives]] have deep, liquid, observable markets, and as there’s little scope for picking a fight, a [[dealer]] {{isdaprov|Calculation Agent}} may not be bothered about ceding rights to dispute its calculations. Expect a different reaction should you seek to second-guess your [[dealer]]’s marks on exotic [[credit derivative|credit derivatives]], on the other hand. These rely enormously on the dealer’s internal models, pricing curves and other kinds of idiosyncratic financial [[bullshit|alchemy]] that are almost certainly unique to the [[dealer]] in question.
 {{sa}}
 *{{eqderivprov|Determining Party}}
+*[[Commercial imperative]]
+*[[Financial weapons of mass destruction top trumps]]
 {{ref}}