Template:M gen 2002 ISDA 2(a): Difference between revisions

Less patient types might think you could read that into the still small voice of calm that is the word “deliver” in the first place. It is bound up with implications about what you are delivering, and whose the thing is that you are delivering. To take a reductio, it would be absurd to suppose one could discharge a physical delivery obligation under a swap by the physical act of delivering it item to which one had no title at all: it is implicit in the commercial rationale of a swap that one is transferring, outright, the value implicit in an asset: that one is surrendering the implicit expense of the asset (in return for whatever your counterparty is paying or surrendering to you). It would not do to say, “oh, well, I did deliver you that asset: it never said anywhere I had to have any proprietary interest in it, or that I was meant to be transferring any legal interest in it to you. It is all about my the act of delivery, I handed something to you, and that is that.”