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Template:Isda 2(a)(iii) summ: Difference between revisions
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This can lead to some unfortunate surprises: the counterparty who, faced with a massive counterparty failure, and diligently files its notice of {{{{{1}}}|Failure to Pay or Deliver}}, only to find that, last week some clot in Collateral Ops mis-keyed a small yen payment or just effected a net settlement that the counterparty didn’t match, meaning that none of the “failing payments” were actually due in the first place. Expect a race back in time to see who committed the earliest unremedied non-payment. | This can lead to some unfortunate surprises: the counterparty who, faced with a massive counterparty failure, and diligently files its notice of {{{{{1}}}|Failure to Pay or Deliver}}, only to find that, last week some clot in Collateral Ops mis-keyed a small yen payment or just effected a net settlement that the counterparty didn’t match, meaning that none of the “failing payments” were actually due in the first place. Expect a race back in time to see who committed the earliest unremedied non-payment. | ||
None of this you will enjoy when, as it will, it happens just as the world has lost its head and is blaming it on you. | ===Speaking of strange days=== | ||
None of this you will enjoy when, as it will, it happens just as the world has lost its head and is blaming it on you. The [[JC]] has a theory — well, the JC has ''lots'' of theories, but this one in particular — that the [[master agreement]]s of the world are a product of ''detente'': that post-Communist, End of History delusion that gripped the world in the roaring nineties, that we had solved the problem of illiberalism, that wars were a thing of the past, and that the worst that could happen was a market crash. As of 2022 we have been rudely disabused of the notion, but we are left with master agreements that do not, terribly well, deal with the illogicalities of war, sanctions, and the sudden, indeterminate interruption of cross-border commercial relations. Section {{{{{1}}}|2(a)(iii)}} — which per the below, was increasingly an irrelevance anyway — speaks to a world in which the worst thing one could do was repudiate a contract, and ''really'' doesn’t work when the fog of war descends and it isn’t clear whether one should, or is allowed to, or must, make payments — opposing governments may have diametrically opposed rules on the topic — and there is a clash of sanctions as well as civilisations. | |||
===...These days?=== | ===...These days?=== | ||