Template:Exposure under csa

{{anattitle-{{{2}}}csa }} Go Premium In a Nutshell™ Section {{{{{2}}}csaprov|Exposure}}: {{Nutshell {{{{{2}}} nutsref}} CSA Exposure}} [[Template:Nutshell {{{{{2}}} nutsref}} CSA Exposure|view template]] {{{{{2}}}csa}} full text of Section {{{{{2}}}csaprov|Exposure}}: {{ISDA {{{{{2}}} Law}} Credit Support Annex {{{{{2}}} year}} Exposure}} [[Template:ISDA {{{{{2}}} Law}} Credit Support Annex {{{{{2}}} year}} Exposure|view template]] Related Agreements Click here for the text of Section Exposure in the 1995 English Law CSA Click here for the text of Section Exposure in the 2016 English Law VM CSA Click [[{{{3}}} - NY VM CSA Provision|here]] for the text of the equivalent, Section [[{{{3}}} - NY VM CSA Provision|{{{3}}}]] in the 2016 NY Law VM CSA Comparisons 1995 CSA and 2016 VM CSA: click for comparison {{nycsadiff {{{3}}}}} {{anatresources-{{{2}}}csa}}{{anatnavigation-{{{2}}}csa}} Comments? Questions? Suggestions? Requests? Insults? We’d love to 📧 hear from you. Sign up for our newsletter.

Relevance of Section 6 to the peacetime operation of the 1995 CSA

The calculation of Exposure under the 1995 CSA is modelled on the Section 6(e)(ii) termination methodology following a Termination Event where there is one Affected Party, which in turn tracks the Section 6(e)(i) methodology following an Event of Default, only taking mid-market valuations and not those on the Non-Defaulting Party’s side.

This means you calculate the Exposure as:

(a) the Close-out Amounts for each Terminated Transaction plus

(b) Unpaid Amounts due to the Non-defaulting Party; minus

(c) Unpaid Amounts due to the Defaulting Party.

This is interesting because, as of its Template:Isdadef the Transaction may be no more, but until those final exchanges are settled the obligations they represent — Unpaid Amounts in the argot of Section 6(e) — still exist and are included in the calculation of the Exposure.