Template:Csa Events of Default summ: Difference between revisions

Template:Csa Events of Default summ (view source)

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-Those of ISDA credit support arrangements that are standalone {{isdaprov|Credit Support Document}}s<ref>In other words the {{nycsa}}, {{nyvmcsa}} and the {{imcsd}}, but ''not'' the {{csa} and the {{vmcsa}}.</ref> bake in a two {{nyvmcsaprov|Local Business Day}} [[grace period]]. This is one Local Business Day ''longer'' than the standard one LBD [[grace period]] baked into the {{2002ma}}, and one Local Business Day ''shorter'' than the standard 3 LBD [[grace period]] baked into the {{1992ma}}. Which is nice.
+====Grace periods====
+Those of ISDA credit support arrangements that are standalone {{isdaprov|Credit Support Document}}s — the {{nycsa}}, {{nyvmcsa}} and the {{imcsd}}, but ''not'' the {{csa} and the {{vmcsa}} — bake in their own two {{{{{1}}}|Local Business Day}} [[grace period]] into their own customised Events of Default.
-The English law CSAs, by the way, don’t have this problem, since they are deemed to be {{isdaprov|Transaction}}s under the {{isdama}} itself, and therefore inherit the {{isdama}}’s Section {{isdaprov|5(a)(i)}} [[grace period]]s. Which, you would have thought, ''has'' to be the more preferable arrangement. But anyway, Americans (and those of you Brits with {{imcsd}}s, the same goes for you, thanks to Section {{imcsdprov|7}} I am afraid) '''your [[grace period]]s might well not match'''.
+The {{1995csa}} and {{2016csa}}, being Transactions, don’t need to and inherit the [[grace period]]s for the {{isdaprov|Events of Default}} in the {{isdama}}.
+That can, at the limit, create a dissonance for Americans and IM posters, as your CSA grace periods do not automatically track your ISDA ones. Two {{{{{1}}}|Local Business Day}}s is an {{isdaprov|LBD}} ''longer'' than the standard one LBD [[grace period]] in the {{2002ma}}, and an {{isdaprov|LBD}} ''shorter'' than the standard 3 {{isdaprov|LBD}} [[grace period]] baked into the {{1992ma}}.
+Which is nice. This is not a problem for the English law Credit Support Annexes that are {{isdaprov|Transactions}}.