An entity that determines the price of an investment product such as a swap. A calculation agent calculates the value of a derivative or the amount owing from each party. The agent also establishes the price for a structured product and may act as its guarantor and issuer. The calculation agent is not a fiduciary, but is expected to avoid conflicts of interest and act in good faith. Its decisions are considered binding. Any disagreement over the calculation agent's decisions must be resolved by a disinterested third-party dealer.

In the credit default swap market, the calculation agent establishes the contract's cash settlement price to give the investors an alternative to a physical settlement. This price will be based on the highest available bids from market makers. The calculation agent, who is typically either the seller or a third party, sometimes takes on a number of other roles in more complex transactions.

www.tandfonline.com [PDF]

… labels, the mundane tools and instruments that allow one to calculate and intervene … and an imagined electronic future, the interrelation between devices for calculating the performance … be wary also of assuming or implying that all modes of economic calculation are derivative …

journals.sagepub.com [PDF]

… labels, the mundane tools and instruments that allow one to calculate and intervene … and an imagined electronic future, the interrelation between devices for calculating the performance … be wary also of assuming or implying that all modes of economic calculation are derivative …

www.sciencedirect.com [PDF]

… labels, the mundane tools and instruments that allow one to calculate and intervene … and an imagined electronic future, the interrelation between devices for calculating the performance … be wary also of assuming or implying that all modes of economic calculation are derivative …

www.tandfonline.com [PDF]

… labels, the mundane tools and instruments that allow one to calculate and intervene … and an imagined electronic future, the interrelation between devices for calculating the performance … be wary also of assuming or implying that all modes of economic calculation are derivative …

journals.sagepub.com [PDF]

… labels, the mundane tools and instruments that allow one to calculate and intervene … and an imagined electronic future, the interrelation between devices for calculating the performance … be wary also of assuming or implying that all modes of economic calculation are derivative …

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Any disagreement over decisions must be resolved by disinterested third-party dealers.

A calculation agent determines the price of an investment product such as a swap.

The calculation agent calculates the value of a derivative or the amount owing from each party.

The calculation agent is not considered a fiduciary, but is expected to avoid conflicts of interest and act in good faith.

The Calculation Agent establishes cash settlement prices for CDS contracts to give investors an alternative to physical settlements.

Yes, they sometimes take on other roles in more complex transactions.

You can learn more at Wikipedia's article on "Calculation Agent".

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