Template:Nutshell 2016 CSA 4(a): Difference between revisions
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Amwelladmin (talk | contribs) (Created page with "{{csaprov|4(a)}} '''{{csaprov|Disputed Calculations or Valuations}}'''. If a {{csaprov|Disputing Party}} disputes any collateral call (the {{csaprov|Value}} of either the {{cs...") |
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*the parties will try resolve the dispute. If by the {{csaprov|Resolution Time}} they haven’t: | *the parties will try resolve the dispute. If by the {{csaprov|Resolution Time}} they haven’t: | ||
**'''Disputes as to {{csaprov|Exposure}}''': the {{csaprov|Valuation Agent}} will recalculate the disputed portion of the {{csaprov|Exposure}} as of the {{csaprov|Recalculation Date}} by: | **'''Disputes as to {{csaprov|Exposure}}''': the {{csaprov|Valuation Agent}} will recalculate the disputed portion of the {{csaprov|Exposure}} as of the {{csaprov|Recalculation Date}} by: | ||
*** | ***averaging mid-market quotations for the {{isdaprov|Market Quotation}} from four {{isdaprov|Reference Market-maker}}s (if a {{1992ma}}-style close out mechanism); or from four third parties for the {{isdaprov|Close-out Amount}} (for a {{2002ma}}-style close out mechanism), in either case from those parties who will provide one (and if none will, the {{csaprov|Valuation Agent}}’s original calculations will stand); and | ||
*** | ***calculating the outstanding {{csaprov|Credit Support Balance}} as per Paragraph {{csaprov|11(f)(ii)}}; | ||
**'''Disputes as to {{csaprov|Credit Support}} {{csaprov|Value}}''': recalculating the {{csaprov|Value}} as of the date of transfer. <br /> | **'''Disputes as to {{csaprov|Credit Support}} {{csaprov|Value}}''': recalculating the {{csaprov|Value}} as of the date of transfer. <br /> | ||
The {{csaprov|Valuation Agent}} will notify each party by the {{csaprov|Notification Time}} on the {{csaprov|Local Business Day}} following the {{csaprov|Resolution Time}}. Then the appropriate transfer has to be made. <br> | The {{csaprov|Valuation Agent}} will notify each party by the {{csaprov|Notification Time}} on the {{csaprov|Local Business Day}} following the {{csaprov|Resolution Time}}. Then the appropriate transfer has to be made. <br> | ||
Revision as of 11:13, 3 August 2018
4(a) Disputed Calculations or Valuations. If a Disputing Party disputes any collateral call (the Value of either the Exposure or the Credit Support being transferred):
- it must give notice by close of business on the date the transfer is due (if a Delivery Amount (VM) or Return Amount (VM)) or, the Local Business Day following the date of transfer (if a transfer of Eligible Credit Support (VM) or Equivalent Credit Support (VM));
- it must transfer any undisputed amount by close of business on the date the transfer is due;
- the parties will try resolve the dispute. If by the Resolution Time they haven’t:
- Disputes as to Exposure: the Valuation Agent will recalculate the disputed portion of the Exposure as of the Recalculation Date by:
- averaging mid-market quotations for the Market Quotation from four Reference Market-makers (if a 1992 ISDA-style close out mechanism); or from four third parties for the Close-out Amount (for a 2002 ISDA-style close out mechanism), in either case from those parties who will provide one (and if none will, the Valuation Agent’s original calculations will stand); and
- calculating the outstanding Credit Support Balance as per Paragraph 11(f)(ii);
- Disputes as to Credit Support Value: recalculating the Value as of the date of transfer.
- Disputes as to Exposure: the Valuation Agent will recalculate the disputed portion of the Exposure as of the Recalculation Date by:
The Valuation Agent will notify each party by the Notification Time on the Local Business Day following the Resolution Time. Then the appropriate transfer has to be made.