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propertycredit_support_typesagreement

credit_support_types


credit_support_types is a means of providing collateral or a security interest for payment obligations under derivative transactions..

csa_isda_1994

The 1994 ISDA Credit Support Annex (Security Interest—New York law), known as the New York law CSA or the New York law annex (the New York law Annex)

It allows parties to establish bilateral mark-to-market security arrangements. This document serves as an Annex to the Schedule to the ISDA Master Agreement and is designed for use in transactions subject to New York law.

csa_isda_1995

The 1995 ISDA Credit Support Annex (Transfer—English law), known as the English law CSA or the English law annex (the English law Annex)

It allows parties to establish bilateral mark-to-market arrangements under English law relying on transfer of title to collateral in the form of securities and/or cash and, in the event of default, inclusion of collateral values within the close-out netting provided by Section 6 of the ISDA Master Agreement. The English Credit Support Annex does not create a security interest, but instead relies on netting for its effectiveness. Like the New York Credit Support Annex, it is an Annex to the Schedule to the ISDA Master Agreement.

csd_isda_1995

The 1995 ISDA Credit Support Deed (Security interest—English law), known as the English law CSD or the English law deed (the English law Deed)

It allows parties to establish bilateral mark-to-market collateral arrangements under English law relying on the creation of a formal security interest in collateral in the form of securities and/or cash. It is a stand-alone document (not an Annex to the Schedule), but is otherwise comparable to the 1994 ISDA Credit Support Annex for use with ISDA Master Agreements subject to New York law (which also relies on the creation of a formal security interest in the collateral).

scsa_isda_2013

The Standard CSA for both the English and New York law Annexes, published in 2013.

The Standard Credit Support Annex (SCSA or Standard CSA) seeks to standardize market practice regarding embedded optionality in current CSAs, promote the adoption of overnight index swap discounting for derivatives, and align the mechanics and economics of collateralization between the bilateral and cleared OTC derivative markets. Additionally, the SCSA seeks to create a homogeneous valuation framework, reducing current barriers to novation and valuation disputes


Additional definitions related to credit_support_types


Credit Support Amount (Variation margin)

The Credit Support Amount defined by ISDA.

Unless modified by the parties, the “Credit Support Amount” is the amount of Eligible Credit Support that the Secured Party is entitled to hold as of aparticular Valuation Date. In other words, it is the exposure of the Secured Party to the Chargor, adjusted to reflect agreed thresholds, minimum transfer amounts and so on.

Unmargined derivatives

The Standardised approach for measuring counterparty credit risk from BIS, published in 2014.

For unmargined transactions(that is, where variation margin (VM) is not exchanged, but collateral other than VM may be present)