Tag: SCSA
Cross-currency collateral ousted from SCSA 2
On 6 November 2014, ISDA released the 2014 “Standard” Credit Support Annex, available as always under English law or New York law. This new CSA is meant to coexist with the legacy 1994 CSA and the already out-of-fashion 2013 CSA published only a year ago. What was presented as a tour de force in the […]
SCSA2 Set to Right the Wrongs of its Predecessor
In light of the difficulties which have plagued ISDA’s Standard Credit Support Annex (SCSA) (see this blog post for background), a successor, the SCSA2, is being drafted. As before, the purpose of the SCSA2
Standard CSA Lives to Die Another Day
Risk Magazine is reporting that ISDA is to embark on a re-write of the Standard Credit Support Annex (SCSA), dubbed “SCSA II”. The triple-whammy delivered by the Basel Leverage Ratio (see this blog post for more detail), the BCBS/IOSCO rules on margin requirements for non-centrally cleared derivatives (see this blog post for more detail) and […]
BCBS Finds CSA’s Soft Underbelly
Risk Magazine is reporting that the Basel Committee on Banking Supervision’s (BCBS) final “Basel III leverage ratio framework and disclosure requirements”, published on 12 January 2014 may force the restructuring of existing portfolios of credit support annexes (CSA) and looks set to deal a serious blow to the viability of ISDA’s standard credit support annex […]
Interpretation of WGMR Haircut Means SCSA Lives To Fight Another Day
Risk Magazine is reporting that certain unnamed US and European regulators are hinting that the additional 8% haircut levied on collateral denominated in a different currency to that of the underlying, to be introduced pursuant to the Working Group on Margining Requirement’s (WGMR) “Margin requirements for non-centrally cleared derivatives”, may be applied only to initial […]
Standard CSA to be Published Today
ISDA has confirmed that the new Standard CSA (New York law and English law) is to be published today. If the pre-publication drafts are anything to go by, there will be aspects of the SCSA which market participants should consider in the context of existing documentation – specifically whether to adopt the SCSA or ‘standardise’ […]
Non-cleared Derivatives Margin Rules could force re-think of SCSA
Here is a link to an interesting article in Risk Magazine regarding the potential impact of the “near final” BCBS/IOSCO margin rules for non-cleared derivatives (the “BCBS/IOSCO Rules”) on the adoption of ISDA’s standard credit support annex (SCSA). The BCBS/IOSCO consultation paper which includes the “near final” rules was published on 15 February 2013 (see […]
Standard CSA to launch before the end of 2012
Risk Magazine reports that the new standard CSA (the “SCSA”) is to be launched within weeks, with at least two dealers ready to execute with each other under the new document. Beyond this, initial take-up of the SCSA is expected to be slow and largely confined to the largest dealers. However, over time, regulatory developments, […]