MtM Exposure Amount Methodology Clause Samples
The "MtM Exposure Amount Methodology" clause defines how the mark-to-market (MtM) exposure between parties is calculated under a financial agreement. It typically outlines the specific formula or process for determining the current value of outstanding transactions, taking into account factors such as market prices, collateral posted, and netting arrangements. For example, it may specify whether exposures are calculated on a gross or net basis and how frequently valuations are updated. This clause is essential for ensuring both parties have a clear, agreed-upon method for assessing credit exposure, thereby reducing disputes and managing counterparty risk effectively.
MtM Exposure Amount Methodology. To calculate the daily exposure for the BGS-FP Supplier, the MtM Exposure Amount methodology will be used. That methodology is described in Appendix D.
MtM Exposure Amount Methodology. To calculate the daily exposure for the BGS-FP Supplier, the MtM Exposure Amount methodology will be used. The “Initial Mark” for each Billing Period will be determined at the time the Illinois Auction is completed based on the available On-Peak Forward Market Prices and, for the remaining Billing Periods for which such prices are not available, will be derived using a proprietary method that reflects forward market conditions. At the time the Illinois Auction is completed, the MtM Exposure Amount for the BGS-FP Supplier shall be equal to zero. Subsequently, the differences between the Initial Mark and the available On-Peak Forward Market Prices on the valuation date (“Mark”) for the corresponding Billing Periods will be used to calculate the daily exposures for the BGS-FP Supplier. The total MtM Exposure Amount will be equal to 1.1 times the sum of the MtM for each Billing Period, less amounts then due the BGS-FP Supplier. The methodology for calculation of the Initial Mark, Mark and MtM is described in Appendix D.
MtM Exposure Amount Methodology. To calculate the daily exposure for the CPP-B Supplier, the MtM Exposure Amount methodology will be used. That methodology is described in Appendix D.