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====Timing of CSA Transfers====
====CSA transfer timings====
<small>[https://jollycontrarian.com/index.php?title=Template:CSA_Transfer_Description&action=edit&section=T-1 edit this section]</small><br>
This is how the timing works for CSA transfers.
This is how the timing works for {{1995csa}} transfers:


*'''Demand Date''': On any date, be it a {{csaprov|Local Business Day}} or not, (call it a "'''Demand Date'''", but note it is required by {{csaprov|2(a)}} or {{csaprov|2(b)}} to be made "on or promptly following a {{csaprov|Valuation Date}}"), a party may make a demand for a {{csaprov|Transfer}} under Paragraph {{csaprov|2(a)}} (for a {{csaprov|Delivery Amount}}) or {{csaprov|2(b)}} (for a {{csaprov|Return Amount}}).  
Terminology check: to make this easy, we refer to both {{{{{1}}}|Delivery Amount}}s ''and'' {{{{{1}}}|Return Amount}}s as “'''{{{{{1}}}|Transfer Amount}}s'''”. This cuts out a lot of “''Delivery Amount [[and/or]] Return Amount [[as the case may be]]''” nonsense. The date on which someone demands a {{{{{1}}}|Transfer Amount}} we call a “'''{{{{{1}}}|Demand Date}}'''”.
*'''{{csaprov|Valuation Time}}''': Note that the point at which the valuation is made is the Valuation Time, which keys off the Valuation Date (by default the {{1995csa}} has elections for either COB on the {{csaprov|Valuation Date}} or COB on the {{csaprov|Local Business Day}} immediately ''before'' the {{csaprov|Valuation Date}}), and therefore not necessarily the Demand Date.
 
*'''{{csaprov|Transfer Date}}''': Under Paragraph {{csaprov|3(a)}} ({{csaprov|Transfers}}) if the demand is received ''before'' the {{csaprov|Notification Time}} (by default, 1pm London time on a {{csaprov|Local Business Day}}) on that Demand Date, the transfer will be made not later than close of business on the {{csaprov|Settlement Day}} relating to that Demand Date. If received ''after'' the {{csaprov|Notification Time}} (ie, after 1pm on a {{csaprov|Local Business Day}}, or at any time on a Demand Date that isn’t itself a {{csaprov|Local Business Day}}), the transfer must be made not later than close of business on the {{csaprov|Settlement Day}} relating to the day (note: ''ordinary'' day, ''not'' {{csaprov|Local Business Day}}) after the Demand Date.
To be clear, neither Demand Date nor {{{{{1}}}|Transfer Amount}} are “ISDA canon”.
*'''{{csaprov|Settlement Day}}''': The {{csaprov|Settlement Day}} with respect to ''any'' day (whether or not it is a {{csaprov|Local Business Day}}) is:
 
**'''Cash''': for cash, the next {{csaprov|Local Business Day}} and,  
Remember the {{{{{1}}}|Valuation Agent}} is simply the person making the demand.
**'''securities''': for securities, the {{csaprov|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.
{{L1}}
*'''Questions''': What if the day in question isn’t itself a {{csaprov|Local Business Day}}? E.g., what if the {{csaprov|Transfer}} demand is received after the {{csaprov|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 in accordance with customary practice?
'''Value {{{{{1}}}|Exposure}} and {{{{{1}}}|Credit Support Balance}}''': Firstly, value what you are going to call: the {{{{{1}}}|Transfer Amount}} under para {{{{{1}}}|2(a)}} or {{{{{1}}}|2(b)}}. This is roughly ''{{{{{1}}}|Credit Support Balance}} - {{{{{1}}}|Exposure}}'' (or ''vice versa'').
**'''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.
{{L3}}
**'''Cash''': For cash, not so clear.
Under {{{{{1}}}|2(a)}}, the {{{{{1}}}|Transferor}} will transfer {{{{{1}}}|Eligible Credit Support}} having a {{{{{1}}}|Value}} ''as of the date of transfer'' of the {{{{{1}}}|Transfer Amount}}. <li>
 
Per the {{{{{1}}}|Calculations}} provision, all calculations happen at the {{{{{1}}}|Valuation Time}}. Fluctuations in value after that time won’t invalidate the {{{{{1}}}|Transfer Amount}}, but they may mean a party can immediately call for more {{{{{1}}}|Credit Support}} (that is, have ''another'' {{{{{1}}}|Demand Date}}). <li>
 
The {{{{{1}}}|Valuation Time}} keys off the {{{{{1}}}|Valuation Date}}.<ref>Under the {{csa}} you may specify either [[close of business]] on the {{csaprov|Valuation Date}} or the {{csaprov|Local Business Day}} immediately ''before'' it. Under the {{vmcsa}} you have flexibility to determine the {{vmcsaprov|Valuation Time}} as at the point you close your book each day.</ref></ol><li>
 
'''{{{{{1}}}|Demand Date}}''':  On or promptly following any {{{{{1}}}|Valuation Date}} (it need not be a {{{{{1}}}|Local Business Day}}) on which the {{{{{1}}}|Exposure}} has moved in its favour, one party may demand a {{{{{1}}}|Delivery Amount}} (para 2(a)) or a {{{{{1}}}|Return Amount}} (para 2(b)). <li>
 
'''{{{{{1}}}|Transfer Date}}''': Under para {{{{{1}}}|3(a)}} (''{{{{{1}}}|Transfers}}'') if the demand is received ''before'' the {{{{{1}}}|Notification Time}} on a {{{{{1}}}|Demand Date}} that is a {{{{{1}}}|Local Business Day}} the transfer must be made by [[close of business]] on the related [[Regular Settlement Day - VM CSA Provision|''Regular'' Settlement Day]].<ref>The “{{csaprov|Settlement Day}}” under the {{csa}} is slightly different.</ref> If received ''after'' the {{{{{1}}}|Notification Time}} or on a non-{{{{{1}}}|Local Business Day}}, the transfer must be made by close of business on the {{vmcsaprov|Regular Settlement Day}} relating to the day<ref>Note: ''ordinary'' day, ''not'' Local Business Day</ref> ''after'' the Demand Date. <li>
 
'''{{csaprov|Settlement Day}}''': Here is where things differ materially between the {{csa}} and the {{vmcsa}}.
{{L3}}
'''{{csa}}''': The {{csaprov|Settlement Day}} for ''any'' day (whether or not it is a {{{{{1}}}|Local Business Day}}) is:
{{L4}}
'''Cash''': for cash, the next {{{{{1}}}|Local Business Day}} and, <li>
'''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>
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