Template:Csa Rights and Remedies summ: Difference between revisions

Template:Csa Rights and Remedies summ (view source)

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 ====Final Returns====
-All versions get to more or less the some place: Once all Obligations are fully settled (with an exception for Taxes, we suppose on the grounds that they could be imposed retrospectively, so it isn’t possible to definitively discharge them, the Secured Party has to give the Credit Support back. This ought to happen automatically where we are talking about variation margin — [[Q.E.D.]], if your Obligations are all settled you have no Exposure so your counterparty has no grounds to hold Posted Credit Support — but for Independent Amounts or initial margin posted under an {{imcsd}}, this is not necessarily the case: the CSA itself might specify an ''independent'' Independent Amount that is not conditional on any Transaction. (This is not how most dealers margin their Swaps, but this is how the original CSAs were conceived in the time of the [[First Men]].)
+All versions get to more or less the some place: Once all {{{{{1}}}|Obligation}}s are fully settled (with an exception for {{isdaprov|Tax}}es — we suppose because they could be imposed retrospectively, so it’s impossible to discharge them definitively — the {{{{{1}}}|Secured Party}} has to give the {{{{{1}}}|Posted Credit Support}} back.
+This ought to happen automatically where we are talking about [[variation margin]] — [[Q.E.D.]], if your {{{{{1}}}|Obligation}}s are all settled you have no {{{{{1}}}|Exposure}} so your counterparty has no grounds to hold {{{{{1}}}|Posted Credit Support}} — but for {{{{{1}}}|Independent Amount}}s or initial margin posted under an {{imcsd}}, this is not necessarily the case: the CSA itself might specify an ''independent'' {{{{{1}}}|Independent Amount}} that is not conditional on any {{{{{1}}}|Transaction}}. (This is not how most dealers handle initial margin their swaps — it tends to be {{{{{1}}}|Transaction}}-specific — but this is how the original CSAs were conceived at the time of the [[First Men]].)