Credit Support Annex

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A Credit Support Annex, or CSA, is a legal document which regulates credit support (collateral) for derivative transactions. It is one of the four parts that make up an ISDA contract but is not mandatory. It is possible to have an ISDA agreement without a CSA but normally not a CSA without an ISDA.

A CSA defines the terms or rules under which collateral is posted or transferred between swap counterparties to mitigate the credit risk arising from "out of the money" derivative positions.

Terms include thresholds, minimum transfer amounts, eligible securities and currencies, haircuts applicable to eligible securities and rules for the settlement of disputes arising over valuation of derivative positions.