Template:Nutshell Equity Derivatives 6.3(a): Difference between revisions
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:(i) a material {{eqderivprov|Trading Disruption}} or {{eqderivprov|Exchange Disruption}} to a {{eqderivprov|Share}} or {{eqderivprov|Index}} during the hour before the {{eqderivprov|Valuation Time}} (etc), or | :(i) a material {{eqderivprov|Trading Disruption}} or {{eqderivprov|Exchange Disruption}} to a {{eqderivprov|Share}} or {{eqderivprov|Index}} during the hour before the {{eqderivprov|Valuation Time}} (etc), or | ||
:(ii) an {{eqderivprov|Early Closure}}. <br> | :(ii) an {{eqderivprov|Early Closure}}. <br> | ||
To work out whether there is a {{eqderivprov|Market Disruption Event}} on an {{eqderivprov|Index}} due to a {{eqderivprov|Market Disruption Event}} on one of its component securities, then the {{isdaprov|Calculation Agent}} will determine the percentage that security contributes to the {{eqderivprov|Index}} by comparing (x) how much of the {{ | To work out whether there is a {{eqderivprov|Market Disruption Event}} on an {{eqderivprov|Index}} due to a {{eqderivprov|Market Disruption Event}} on one of its component securities, then the {{isdaprov|Calculation Agent}} will determine the percentage that security contributes to the {{eqderivprov|Index}} by comparing (x) how much of the {{eqderivprov|Index}} level is attributable to that security with (y) the {{eqderivprov|Index}} level just before the {{eqderivprov|Market Disruption Event}} happened.<br> | ||
Revision as of 09:03, 5 April 2018
6.3(a) “Market Disruption Event” means
- (i) a material Trading Disruption or Exchange Disruption to a Share or Index during the hour before the Valuation Time (etc), or
- (ii) an Early Closure.
To work out whether there is a Market Disruption Event on an Index due to a Market Disruption Event on one of its component securities, then the Calculation Agent will determine the percentage that security contributes to the Index by comparing (x) how much of the Index level is attributable to that security with (y) the Index level just before the Market Disruption Event happened.