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VM CSA Anatomy: Difference between revisions
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The 2016 {{tag|CSA}} generated at great expense by {{tag|ISDA}} to deal with all the regulatory obligations to post and collect [[variation margin]] that have popped up around the world, like so many stable doors boinking emptily against their jambs while the ponies of financial ruin career wildly through the meadows of propriety. | {{Vmcsaanat}}The 2016 {{tag|CSA}} generated at great expense by {{tag|ISDA}} to deal with all the regulatory obligations to post and collect [[variation margin]] that have popped up around the world, like so many stable doors boinking emptily against their jambs while the ponies of financial ruin career wildly through the meadows of propriety. | ||
{{ | Part of the point of regulatory compliance was to ''remove'' the concept of title-transfer {{csaprov|Independent Amount}} (“{{csaprov|IA}}” being {{tag|ISDA}}-speak for “[[initial margin]]”). After all, [[title transfer]] [[IA]] rather strikes at the heart of the regulatory aspiration, namely to collateralise [[mark-to-market]] exposures, so that neither party carried significant credit exposure to the other. | ||
But then everyone decided they quite ''liked'' their {{tag|initial margin}}, as long as it wasn't *too* much. So ISDA prepared a version of the [[2016 CSA]] which included the {{csaprov|Independent Amounts}} they had so laboriously stripped out, only in a little paragraph buried in the schedule of elections (Para {{csaprov|11}} or {{csaprov|13}}, depending on your edition). | |||
Then ISDA decided not to publish it. | |||
All this during the crescendo to the full-bore bunfight of repapering all the world's derivatives clients as a “seemingly immutable”<ref>We’ll see</ref> pan-global regulatory deadline stood menacingly in the way like an unforgiving concrete wall to the sideways-sliding Morris Minor of the world’s derivatives documentation capacity. | |||
{{Csa clause table}} | |||
{{ref}} | |||