Template:Csa 2(a) comp

Now the interesting thing here is the difference that pledged collateral under the {{ny{{{1}}}}} makes over title-transferred collateral regime of the {{{{{1}}}}}. You will see the difference in the {{ny{{{1}}}}}’s {{ny{{{1}}}prov|Delivery Amount}}, which is the positive difference between {{ny{{{1}}}prov|Secured Party}}’s {{ny{{{1}}}prov|Exposure}} and the value of {{ny{{{1}}}prov|Posted Credit Support}} held by the {{ny{{{1}}}prov|Secured Party}} — easy, right? — and {{{{{1}}}}}’s equivalent provision which is the positive difference between the {{{{{1}}}prov|Transferee}}’s {{{{{1}}}prov|Exposure}} and the {{{{{1}}}prov|Credit Support Balance}} adjusted to exclude any inflight but unsettled collateral movements.

The {{{{{1}}}}} is a bit more leaden in how it describes things but these amount to the same thing: you don’t get any credit (support) for collateral until it has landed with the other party. This creates some curious scenarios, as you will see if you read on. {{ny{{{1}}}prov|3(a)}} — {{{{{1}}}prov|2(a)}}