Template:M summ 2018 CSD Other CSA

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In the 2018 English law IM CSD, the Other CSA concept weighs in to handle the complex job of teasing apart what is real regulatory initial margin and what is merely stuff your dealer wants you to pony up for a rainy day, regardless of whether regulators think you need to. That, in the old days, we used to call an Independent Amount, and that lineage is preserved in its modern label “Margin Amount (IA)”, to be contrasted with Margin Amount (IM) for the compulsory regulatory stuff.

What you need to bear in mind here is that for your other margin arrangement to count as an Other CSA and for ISDA’s crack drafting squad™’s careful engineering to kick in, you will need to specify it as an Other CSA in paragraph 13, unless it is already a Credit Support Annex under this ISDA Master Agreement — because in that case it is already a Transaction under the Agreement, see? (Don ’t forget that Credit Support Deeds aren’t part of the ISDA Master Agreement and do need to be specified as an Other CSA. Even though, strictly speaking they’re deeds and not annexes and — oh well, how sad, never mind.

If I were more entrepreneurial than I am, I would make a witty tea-towel up about this, like that one with the rules of cricket on it, so dads could have it up in their home bars, like my father did, next to the poster of the chimpanzee playing tennis and scratching his arse.