Template:Nutshell 2018 CSD 3(c)(iii): Difference between revisions

From The Jolly Contrarian
Jump to navigation Jump to search
No edit summary
No edit summary
 
(2 intermediate revisions by the same user not shown)
Line 1: Line 1:
{{imcsdprov|3(c)(iii)}} '''{{imcsdprov|Margin Approach}}'''. The parties will agree in Paragraph {{imcsdprov|13}}, one of the following “'''{{imcsdprov|Margin Approach}}es'''” to govern the relationship between “'''{{imcsdprov|Margin Amount (IM)}}'''” and “'''{{imcsdprov|Margin Amount (IA)}}'''”
{{imcsdprov|3(c)(iii)}} '''{{imcsdprov|Margin Approach}}'''. Based on the “'''{{imcsdprov|Margin Approach}}'''” specified in Paragraph {{imcsdprov|13}} to govern the relationship between “'''{{imcsdprov|Margin Amount (IM)}}'''” and “'''{{imcsdprov|Margin Amount (IA)}}'''”, a {{imcsdprov|Chargor}}’s “'''{{imcsdprov|Credit Support Amount (IM)}}'''” on any {{imcsdprov|Calculation Date (IM)}} will be:
{{Nutshell 2018 CSD 3(c)(iii)(A)}}
{{Nutshell 2018 CSD 3(c)(iii)(A)}}
{{Nutshell 2018 CSD 3(c)(iii)(B)}}
{{Nutshell 2018 CSD 3(c)(iii)(B)}}
{{Nutshell 2018 CSD 3(c)(iii)(C)}}
{{Nutshell 2018 CSD 3(c)(iii)(C)}}

Latest revision as of 14:50, 19 April 2021

3(c)(iii) Margin Approach. Based on the “Margin Approach” specified in Paragraph 13 to govern the relationship between “Margin Amount (IM)” and “Margin Amount (IA)”, a Chargor’s “Credit Support Amount (IM)” on any Calculation Date (IM) will be:

(A) If “Distinct Margin Flow (IM) Approach” applies: Max [Margin Amount (IM) - Threshold (IM), 0], and the Chargor’s Margin Amount (IA) posting obligation under any Other CSA will not be affected in any way.
(B) If “Allocated Margin Flow (IM/IA) Approach” applies: Max [Margin Amount (IM) - Threshold (IM), 0] and its posting obligation for Margin Amount (IA) under any Other CSA will be reduced by that Credit Support Amount (IM) (subject to a minimum of zero).
(C) If “Greater of Margin Flow (IM/IA) Approach” applies: Max [Max [Margin Amount (IM) -Threshold (IM), Margin Amount (IA)], 0], and its posting obligation for Margin Amount (IA) under any Other CSA will be reduced to zero.