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Template:M summ EFET Allowance Annex 4.3: Difference between revisions
Template:M summ EFET Allowance Annex 4.3 (view source)
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Amwelladmin (talk | contribs) (Created page with "If applied, if the Parties happen to be transferring fungible {{efetaprov|Allowances}} to each other on the same day and between the same specified {{efetprov|Holding Accounts}}, you can net settle. As with the {{isda}} equivalent (Section {{isdaprov|2(c)}}) a physical netting clause is not really a legal thing, seeing as you either do net settle, in which case everyone gets what they need and there is nothing to sue about, or you don’t — one party forgets, so over-d...") |
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If applied, if the Parties happen to be transferring fungible {{efetaprov|Allowances}} to each other on the same day and between the same specified {{efetprov|Holding Accounts}}, you can net settle. As with the {{isda}} equivalent (Section {{isdaprov|2(c)}}) a physical netting clause is not really a legal thing, seeing as you either do net settle, in which case everyone gets what they need and there is nothing to sue about, or you don’t — one party forgets, so over-delivers, and there is all sorts of rebalancing, transferring back required and so on. | [[Physical Settlement Netting - EFET Allowance Provision|If]] applied, if the Parties happen to be transferring fungible {{efetaprov|Allowances}} to each other on the same day and between the same specified {{efetprov|Holding Accounts}}, you can net settle. As with the {{isda}} equivalent (Section {{isdaprov|2(c)}}) a physical netting clause is not really a legal thing, seeing as you either do net settle, in which case everyone gets what they need and there is nothing to sue about, or you don’t — one party forgets, so over-delivers, and there is all sorts of rebalancing, transferring back required and so on. | ||
Here’s what the JC has to say about ISDA settlement netting: | Here’s what the JC has to say about ISDA settlement netting: | ||
{{quote|{{M summ 2002 ISDA 2(c)}}}} | {{quote|{{raw:jc:M summ 2002 ISDA 2(c)}}}} | ||