Derivatives · glossary
Who values the trades for collateral, and when. The bank values them each Monday, or on the next business day after a holiday, using the figures at the close of the business day before. Annex, paragraph 5 · Chapter 10
Explained in Chapter 10, Collateral: the Annex and the Call, of Derivatives.
The bank’s collateral team sends the figures, acting for the bank as Valuation Agent. So the bank marks its own homework, and the annex lets Atlas dispute its figures. Atlas must object by the next business day and pay the undisputed part meanwhile. Each side then gets a quote from a dealer, and the bank recalculates the figure from the two.Read Chapter 10, Collateral: the Annex and the Call →
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