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| =====Everyone’s hair will be on fire=====
| | {{isda 6(a) summ|isdaprov}} |
| This is likely to be a time where the market is dislocated, your [[credit officer]] is running around with her hair on fire, your normally affable counterparty is suddenly diffident, evasive, or strangely just not picking up the phone, and your online master agreement database has crashed because everyone in the firm is interrogating it at once. The sense of dreary quietude in which your Master Agreement was negotiated will certainly not prevail. Bear this in mind when negotiating. For example, the elaborate steps your counterparty insists on for your sending close-out notices, to fifteen different addresses, in five different formats and with magic words in the heading, will ''really trip your gears'', especially if some of those methods are no longer possible. There is an argument that some buy-side counterparties complicate the formal process of closing out specifically to buy time and deter their dealers from pulling the trigger. It is a pretty neat trick, if so: you can expect the [[dealer]]’s credit department to puke all over a [[Margin lock-up|margin lockup]], but a bit of fiddling around the edges of a {{isdaprov|Notices}} section? Sure, whatever.
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| Bear in mind, too: this is one time the [[commercial imperative]] will count for nothing. This is it: literally, the end game. If you close out there is no business: you are terminating your trading relationship altogether ''with extreme prejudice''. The normal ''[[Iterated prisoner’s dilemma|iterated]]'' game of [[prisoner’s dilemma]] has turned into a ''[[Single round prisoner’s dilemma|single round]] game''. Game theorists will realise at once that the calculus is very different, and much, much less appealing.
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| So: good luck keeping your head while all around you are losing theirs.
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| =====Close-out sequence=====
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| Once you have designated an {{isdaprov|Early Termination Date}} for your {{isdama}}, proceed to {{isdaprov|6(c)}} to understand the {{isdaprov|Effect of Designation}}. ''Or'' learn about it in one place with the NC.’s handy cribsheet, “[[closing out an ISDA]]”.
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| The {{isdaprov|Notices}} provisions in Section {{isdaprov|12}} are relevant to ''how'' you may serve this notice. In a nutshell, in writing, by hand. Don’t [[email]] it, [[fax]] it, [[telex]] it, or send it by any kind of pony express or carrier pigeon unless your pigeon/pony is willing to provide an [[affidavit of service]].
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