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**'''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. | **'''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. | ||
===Questions=== | |||
*'''{{csaprov|Demand Date}} not a {{csaprov|Local Business Day}}''': What if the {{csaprov|Demand Date}} is not a {{csaprov|Local Business Day}}? E.g., what if it 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? | *'''{{csaprov|Demand Date}} not a {{csaprov|Local Business Day}}''': What if the {{csaprov|Demand Date}} is not a {{csaprov|Local Business Day}}? E.g., what if it 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? | ||
**'''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. | **'''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. | **'''Cash''': For cash, not so clear. | ||
*'''What happens if the value of the transferred credit support changes in value on the {{csaprov|Settlement | *'''What happens if the value of the transferred credit support changes in value on the {{csaprov|Settlement Day}}'''? | ||
*'''What happens to {{csaprov|Exposure}}s if the {{csaprov|Settlement | *'''What happens to {{csaprov|Exposure}}s if the {{csaprov|Settlement Day}} is a long time after the {{csaprov|Demand Date}}<ref>As it may well be if the collateral are corporate [[bond]]s held in a [[clearing system]]</ref>?''': Is the demand, if answered with irrevocable instructions to deliver, treated as having been met, or does the {{csaprov|Exposure}} stay outstanding until the collateral actually comes in? The answer (counterintuive, given that the transferee remains subject to the credit exposure during this time) is YES, thanks to the definitions of {{csaprov|Delivery Amount}} and {{csaprov|Return Amount}}, both of which include the words: | ||
:''...the Value as of that {{csaprov|Valuation Date}} of the {{csaprov|Transferor}}’s {{csaprov|Credit Support Balance}} '''''(adjusted to include any prior {{csaprov|Delivery Amount}} and to exclude any prior {{csaprov|Return Amount}}, the transfer of which, in either case, has not yet been completed and for which the relevant {{csaprov|Settlement Day}} falls on or after such {{csaprov|Valuation Date}})'''''.'' | :''...the Value as of that {{csaprov|Valuation Date}} of the {{csaprov|Transferor}}’s {{csaprov|Credit Support Balance}} '''''(adjusted to include any prior {{csaprov|Delivery Amount}} and to exclude any prior {{csaprov|Return Amount}}, the transfer of which, in either case, has not yet been completed and for which the relevant {{csaprov|Settlement Day}} falls on or after such {{csaprov|Valuation Date}})'''''.'' | ||