Template:Credit support annex as a credit support document

The 1995 CSA is not a {{{{{1}}}|Credit Support Document}}...

Among the countless good examples of just how contrived, over-engineered, and fiddly for the sake of being fiddly the ISDA canon is, there is none better than the fact that a New York law Credit Support Annex is a {{{{{1}}}|Credit Support Document}}, while the English law equivalent is not. If that were not silly enough, according to User’s Guide best practice one should not designate the counterparties themselves as {{{{{1}}}|Credit Support Provider}}s to either, though it unclear which portion of the sky would fall in if one did.

A CSA is not a {{{{{1}}}|Credit Support Document}}, and you should not list it as one in {{{{{1}}}|Part 4}} of the {{{{{1}}}|Schedule}}, however satisfying it might be to do so. I mean it sounds like one, right? But no: the counterparty cannot be its own {{{{{1}}}|Credit Support Provider}}. The 1995 CSA is, rather, a {{{{{1}}}|Transaction}} under the ISDA Master Agreement. This is rather important to the whole issue of close-out netting. Deep ISDA lore.

But the 1994 New York law CSA is a {{{{{1}}}|Credit Support Document}}: because it is a security financial collateral arrangement arrangement and not a title transfer collateral arrangement, transfer of credit support under a 1994 New York law CSA does not change the net liabilities between the parties, the 1994 New York law CSA (and its regulatory VM successor, the 2016 NY Law VM CSA is a {{{{{1}}}|Credit Support Document}} and not a transaction under the ISDA Master Agreement. But, because the parties cannot be their own {{{{{1}}}|Credit Support Provider}}s, there are no Credit Support Providers under a New York law CSA. It is like some kind of self-animating poltergeist. Fun, huh?