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The {{2002ma}} expands the basic definition of {{isdaprov|Specified Transaction}} to specifically include [[futures]] [[credit derivatives]], [[repo]], [[stock lending]], weather derivatives, [[NDF]]s, transactions executed under terms of business and other commodities or similar transactions that is presently or in future becomes common in the financial markets. | The {{2002ma}} expands the basic definition of {{isdaprov|Specified Transaction}} to specifically include [[futures]] [[credit derivatives]], [[repo]], [[stock lending]], weather derivatives, [[NDF]]s, transactions executed under terms of business and other commodities or similar transactions that is presently or in future becomes common in the financial markets. | ||
Note | Note {{dust}} doesn't generally pick up contracts in the nature of [[borrowed money]] or [[indebtedness]], because these are picked up under the wider scope of the {{isdaprov|Cross Default}} provision which, of course, applies to indebtedness owed to anyone, not just by your counterparty to you. Still, there is weirdness: {{isdaprov|Cross Default}} contemplates a {{isdaprov|Threshold Amount}} before it can be triggered. {{isdaprov|DUST}} doesn't. So this leads to an odd gap: | ||
A (sub Threshold Amount) default under {{isdaprov|Specified Indebtedness}} between the two contractual parties would not entitle the unaffacted party to close out, but a default under any other derivative transaction (as dfefined in {{isdaprov|Specified Transaction}}) would. | A (sub Threshold Amount) default under {{isdaprov|Specified Indebtedness}} between the two contractual parties would not entitle the unaffacted party to close out, but a default under any other derivative transaction (as dfefined in {{isdaprov|Specified Transaction}}) would. Kind of counterintuitive. | ||
{{isdaanatomy}} | {{isdaanatomy}} | ||
*{{isdaprov|Default under Specified Transaction}} | *{{isdaprov|Default under Specified Transaction}} |