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Template:M gen 2002 ISDA 6(d): Difference between revisions
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Section 6(d) gives the [[ISDA ninja]] a bit of a chicken-and-egg situation on close-out as, having served your Section {{isdaprov|6(a)}} notice designating a point in the near future as the {{isdaprov|Early Termination Date}}, you must now ascertain termination values for the {{isdaprov|Terminated Transaction}}s ''as of'' that date, ''before'' that date, but you ''can’t'' really work out their [[mark-to-market]] values at any time before that date, not being able to see into the future or anything.<ref>Apologies if we are underestimating your faculties here by the way. But if you are clairvoyant, why did you trade with this counterparty in the first place? Huh?</ref> | Section {{isdaprov|6(d)}} gives the [[ISDA ninja]] a bit of a chicken-and-egg situation on close-out as, having served your Section {{isdaprov|6(a)}} notice designating a point in the near future as the {{isdaprov|Early Termination Date}}, you must now ascertain termination values for the {{isdaprov|Terminated Transaction}}s ''as of'' that date, ''before'' that date, but you ''can’t'' really work out their [[mark-to-market]] values at any time before that date, not being able to see into the future or anything.<ref>Apologies if we are underestimating your faculties here by the way. But if you are clairvoyant, why did you trade with this counterparty in the first place? Huh?</ref> | ||
Anyway, that’s a conundrum for your [[Trader|trading]] people (and in-house [[Metaphysics|metaphysicians]]) to deal with and it need not trouble we [[Legal Eagles|eagles of the law]]. For our purposes, the trading and risk people need to come up with {{isdaprov|Close-out Amount}}s<ref>Or un-labelled equivalent for {{1992ma}}s.</ref> for all outstanding {{isdaprov|Transaction}}s. Once they have done that you are ready for your Section {{isdaprov|6(e)}} notice. | Anyway, that’s a conundrum for your [[Trader|trading]] people (and in-house [[Metaphysics|metaphysicians]]) to deal with and it need not trouble we [[Legal Eagles|eagles of the law]]. For our purposes, the trading and risk people need to come up with {{isdaprov|Close-out Amount}}s<ref>Or un-labelled equivalent for {{1992ma}}s.</ref> for all outstanding {{isdaprov|Transaction}}s. Once they have done that you are ready for your Section {{isdaprov|6(e)}} notice. | ||