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.
-Part of the industry was to remove Independent amounts - it seeming like they struck rather at the heart of the regulatory aspiration, namely to collateralise [[mark-to-market]] exposures. But then everyone decided they quite liked their initial margin, as long as it wasn't *too* much. So ISDA prepared a version with Independent amounts as well. Then they decided not to publish it. All this during the crescendo to a full-bore bunfight papering all ones clients as a “seemingly immutable”<ref>We’ll see</ref> deadline stood menacingly like an unforgiving concrete wall to the sideways-sliding Morris Minor of the world’s derivatives documentation capacity.
+Part of the point of regulatory compliance was to remove the {{csaprov|Independent Amount}} concept ({{csaprov|IA}} is {{tag|ISDA}}-speak for [[initial margin]]) - it seeming like the concept struck rather 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 at all. 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 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.
 {{2016 VM CSA TOC}}