Template:Extraordinary events capsule: Difference between revisions

Template:Extraordinary events capsule (view source)

Revision as of 14:18, 27 March 2020

155 bytes added , 27 March 2020

no edit summary

Amwelladmin

Bureaucrats, Interface administrators, Administrators

83,357

edits

@@ Line 1: / Line 1: @@
 Break these '''“{{eqderivprov|Extraordinary Events}}”''' into four categories:
-*'''[[Corporate action]] thingies''': (generally) benign but unscheduled matters of corporate structure concerning the management of specific underlying {{eqderivprov|Shares}}, that change the economic proposition represented by those {{eqderivprov|Shares}}, and not the [[equity derivative]] contract. So: {{eqderivprov|Merger Event}}s and {{eqderivprov|Tender Offer}}s;
+*'''[[Corporate action]]s on {{eqderivprov|Issuer}}s''': (generally) benign but unscheduled matters of corporate structure concerning the management of specific underlying {{eqderivprov|Shares}}, that change the economic proposition represented by those {{eqderivprov|Shares}}, and not the [[equity derivative]] contract. So: {{eqderivprov|Merger Event}}s and {{eqderivprov|Tender Offer}}s;
 *'''[[Index Adjustment Event - Equity Derivatives Provision|Index adjustments]]''': Equivalent measures that relate to an underlying {{eqderivprov|Index}} - collectively {{eqderivprov|Index Adjustment Event}}s. So:
 :*''{{eqderivprov|Index Modification}}'': Changes in the calculation methodology for the {{eqderivprov|Index}}
 :*''{{eqderivprov|Index Cancellation}}'': Where {{eqderivprov|Index}}es are discontinued with replacement;
 :*''{{eqderivprov|Index Disruption}}'': disruption in the calculation and publication of {{eqderivprov|Index}} values;
-*'''Negative ''external'' events relating to underlying {{eqderivprov|Issuer}}s''': {{eqderivprov|Nationalization}}s, {{eqderivprov|Insolvency}}, {{eqderivprov|Delisting}} of underlying {{eqderivprov|Issuer}}s;
+*'''Negative events affecting {{eqderivprov|Issuer}}s''': {{eqderivprov|Nationalization}}s, {{eqderivprov|Insolvency}}, {{eqderivprov|Delisting}} of underlying {{eqderivprov|Issuer}}s;
-*'''Matters impeding the parties in performing and hedging the Transaction''': These oftebn do have some crossover with the events above, but the emphasis here is (for the most part) on their direct impact on the parties’ respective abilities to perform and risk manage the Transaction. So, the Triple Cocktail of Chain in Law, Hedging Disruption and Increased Cost of Hedging; the specific issues relating to short-selling (Loss of Stock Borrow and Increased Cost of Stock Borrow) and then two random ones that don’t brilliantly fit with this theory, but which people tend to disapply — possibly for this exact reason, but possibly because they are largely covered by the Triple Cocktail anyway — namely {{eqderivprov|Failure to Deliver}} and, even more weirdly, {{eqderivprov|Insolvency Filing}}. <br>
+*'''{{eqderivprov|Transaction}} disruption''': These often do have some crossover with market events above, but the emphasis here is the direct impact on the parties’ abilities to perform and hedge the {{eqderivprov|Transaction}}. So, the {{eqderivprov|Triple Cocktail}} of {{eqderivprov|Change in Law}}, {{eqderivprov|Hedging Disruption}} and {{eqderivprov|Increased Cost of Hedging}}; the specific issues relating to short-selling ({{eqderivprov|Loss of Stock Borrow}} and {{eqderivprov|Increased Cost of Stock Borrow}}) and then two random ones that don’t brilliantly fit with this theory, and which people tend to disapply — possibly for that exact reason, but they are fairly well covered by the {{eqderivprov|Triple Cocktail}} anyway — {{eqderivprov|Failure to Deliver}} on account of illiquidity and, even more randomly, {{eqderivprov|Insolvency Filing}}<ref>especiaklly since there is already an {{eqderivprov|Insolvency}} event covering most of this). <br>