Template:CSA Transfer Description: Difference between revisions

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 '''Securities''': for securities, the {{{{{1}}}|Local Business Day}} after the date on which a trade in the relevant security, if effected on the day in question, would have been settled in accordance with customary practice. </ol><li>
 '''{{vmcsa}}''': In the new world we have the new concept of the [[Regular Settlement Day - VM CSA Provision|''Regular'' Settlement Day]], and this is the same {{vmcsaprov|Local Business Day}} as the Demand Date. The run-off text at the end of Paragraph {{vmcsaprov|3(a)}} gives you a little more flex: if the demand came after the {{vmcsaprov|Notification Time}}, then you must make the transfer by close on the {{vmcsaprov|Regular Settlement Day}} for the next day. Just how the business days interact under the ISDA and CSA is about as complicated as string theory, by the way. For a cheat’s guide, see [[How business days work under the CSA]]. You’re welcome! </ol></ol>
-====Questions====
-Q: '''What if the {{{{{1}}}|Demand Date}} not a {{{{{1}}}|Local Business Day}}''':  What if it is received after the {{{{{1}}}|Notification Time}} on a Friday, meaning the {{csaprov|Settlement Day}} takes place on the date on which a trade, effected on a Saturday, would have been settled following customary practice?
-A: '''Securities''': For securities this is ok: a trade effected on a non-business day would be deemed to be effected on the next following Local Business Day anyway, so it would pick this up. '''Cash''': For cash, not so clear.
-Q: '''What happens if the transferred credit support changes in value on the {{{{{1}}}|Settlement Day}}'''?<br>
-Q: '''What happens to {{{{{1}}}|Exposure}}s if the {{{{{1}}}|Settlement Day}} is a long time after the Demand Date?''' It may well be, under a {{csa}}, if corporate [[bond]]s held in a [[clearing system]] are eligible collateral. Is the demand, if answered with irrevocable instructions to deliver, treated as having been met, or does the {{{{{1}}}|Exposure}} stay outstanding until the collateral comes in? The answer (counterintuitive, given that the {{{{{1}}}|Transferee}} remains subject to the [[credit exposure]] during this time) is YES, thanks to the definitions of {{{{{1}}}|Delivery Amount}} and {{{{{1}}}|Return Amount}}, both of which include the words:
-{{quote|“...the {{{{{1}}}|Value}} as of that {{{{{1}}}|Valuation Date}} of the {{{{{1}}}|Transferor}}’s {{{{{1}}}|Credit Support Balance}} (adjusted to include any prior {{{{{1}}}|Delivery Amount}} and to exclude any prior {{{{{1}}}|Return Amount}}, the transfer of which, in either case, has not yet been completed and for which the relevant {{{{{1}}}|Settlement Day}} falls on or after such {{{{{1}}}|Valuation Date}}).”}}
-Q: '''What if I have to pay out a {{isdaprov|Transaction}} termination amount which the counterparty is already holding all or some of by way of [[variation margin]]?''' Since it will owe me that back, we can just offset those and call it quits, right?
-A: ''Wrong''. See our [[Transaction terminations and VM|separate article]] on that issue.