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Template:Isda 5(a)(v) summ: Difference between revisions
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In which {{icds}} got bogged down in the weeds once in [[1987 ISDA Interest Rate and Currency Exchange Agreement|1987]], doubled down in their in-weed bogged-downness in [[2002 ISDA Master Agreement|2002]], and we’ve been dealing with resulting confusion ever since. A case of [[Voltaire’s maxim|perfection being the enemy of good enough]], as Voltaire would say, in the [[JC]]’s humble opinion, especially in these modern times where, thanks to compulsory daily zero-threshold [[variation margin]]ing, [[DUST]] is even more of a dead letter than it even was in the good old days. To our knowledge, no {{isdama}} in history has been closed out using, ''exclusively'', Section {{{{{1}}}|5(a)(v)}}. | In which {{icds}} got bogged down in the weeds once in [[1987 ISDA Interest Rate and Currency Exchange Agreement|1987]], doubled down in their in-weed bogged-downness in [[2002 ISDA Master Agreement|2002]], and we’ve been dealing with resulting confusion ever since. A case of [[Voltaire’s maxim|perfection being the enemy of good enough]], as Voltaire would say, in the [[JC]]’s humble opinion, especially in these modern times where, thanks to compulsory daily zero-threshold [[variation margin]]ing, [[DUST]] is even more of a dead letter than it even was in the good old days. To our knowledge, no {{isdama}} in history has been closed out using, ''exclusively'', Section {{{{{1}}}|5(a)(v)}}. | ||
That said, the {{ | That said, the {{1992ma}} version is a bit skew-wiff as regards mini-closeout, and you may find assiduous counterparties hungrily licking their lips at the prospect of a hearty negotiation about this bald man’s comb. | ||
We are talking about other derivative-''like'' transactions, between you and the same counterparty, where the counterparty presents a clear and present danger of blowing up, but where that behaviour has not yet manifested under the present {{isdama}}, meaning you have no grounds to blow them up directly. So, you know, fairly implausible scenario, but still. You want to use the event arising under this ''other'' {{{{{1}}}|Specified Transaction}} to detonate the present ISDA. [[The squad]] breaks your ability to do so down in to four scenarios: | We are talking about other derivative-''like'' transactions, between you and the same counterparty, where the counterparty presents a clear and present danger of blowing up, but where that behaviour has not yet manifested under the present {{isdama}}, meaning you have no grounds to blow them up directly. So, you know, fairly implausible scenario, but still. You want to use the event arising under this ''other'' {{{{{1}}}|Specified Transaction}} to detonate the present ISDA. [[The squad]] breaks your ability to do so down in to four scenarios: | ||