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| [[Specified Transaction - ISDA Provision|Used]] in the {{isdaprov|Default under Specified Transaction}} {{isdaprov|Event of Default}} under Section {{isdaprov|5(a)(v)}} — fondly known to those in the know as “{{isdaprov|DUST}}”.
| | {{isda Specified Transaction summ|isdaprov}} |
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| ===Credit support annexes?===
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| [[Specified Transaction - 1992 ISDA Provision|We]] are going to go out on a limb here and say that little parenthetical “(including an agreement with respect to any such transaction)” is, if not deliberately ''designed'' that way, is at least ''[[calculated]]''<ref>In the sense of being “likely”.</ref> to capture failures under a [[credit support annex]] which, yes, is a {{isdaprov|Transaction}} under an {{isdama}} but no, is not really a swap or anything really like one.
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| There is enough chat about {{isdaprov|Credit Support Provider}}s (yes, yes, the counterparty itself is of course not a {{isdaprov|Credit Support Provider}}) to make us think, on a [[fair, large and liberal]] interpretation, that a default under the [[CSA]] to a swap {{isdaprov|Transaction}} is meant to be covered.
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| ===What?===
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| {{isdaprov|Specified Transaction}}s are those financial markets transactions between you and your counterparty ''other than those under the present {{isdama}}'', default under which justifies the wronged party closing out the present {{isda}}. “Specified Transactions” therefore specifically ''exclude'' {{isdaprov|Transactions}} under the ISDA itself for the sensible reason that a default under those is covered by by {{isdaprov|Failure to Pay or Deliver}} and {{isdaprov|Breach of Obligation}}. It might lead to a perverse result if misadventure under an {{isdama}} {{isdaprov|Transaction}} which did not otherwise amount to an {{isdaprov|Event of Default}}, became one purely as a result of the {{isdaprov|DUST}} provision, however unlikely that may be.
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| ===Enter the fiddlers===
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| ISDA’s verbal profligacy won’t stop enthusiastic credit officers amplifying the list even further, of course. What about [[precious metals|precious metal]] transactions? {{tag|Letter of credit}} reimbursement obligations? [[Indebtedness]]? What indeed?
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| ====An odd [[cognitive dissonance]]====
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| The framers of {{dust}} ''deliberately'' neglected to include [[borrowed money]] or [[indebtedness]], because these are picked up under the wider scope of the {{isdaprov|Cross Default}} provision which, of course, applies to indebtedness your counterparty owes to ''anyone'', not just you. Still, there is weirdness: {{isdaprov|Cross Default}} contemplates a {{isdaprov|Threshold Amount}} before it can be triggered. {{isdaprov|DUST}} doesn’t. So this leads to an odd gap:
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| *A (sub {{isdaprov|Threshold Amount}}) default under {{isdaprov|Specified Indebtedness}} ''between the two contractual parties'' would not entitle the innocent party to close out;
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| *A default under ''any other {{isdaprov|Specified Transaction}}'' between them ''would'' ''''' even if a smaller quantum of default'''''. This is kind of counterintuitive. If you were to define {{dust}} to include indebtedness, of course, you'd be covered.
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