Consequences of Hedging Disruption - Equity Derivatives Provision: Difference between revisions

Revision as of 07:54, 17 April 2020

2002 ISDA Equity Derivatives Definitions
A Jolly Contrarian owner’s manual™

Resources and navigation

Resources About the Equity Derivatives Definitions \| (full wikitext) \| (nutshell wikitext) \| Equity v credit derivatives showdown Hot topics Synthetic Prime Brokerage Anatomy \| The Triple Cocktail \| Cancellation and Payment \| Calculation Agent TOC \| 1 General Definitions \| 2 Option Transactions \| 3 Exercise of Options \| 4 Forward Transactions \| 5 Equity Swap Transactions \| 6 Valuation \| 7 Settlement \| 8 Cash Settlement \| 9 Physical Settlement \| 10 Dividends \| 11 Adjustments and Modifications \| 12 Extraordinary Events · 12.8 Cancellation Amount · 12.9 Additional Disruption Events · 12.9 List of ADEs · 12.9(b) Consequences of ADEs \| 13 Miscellaneous Index: Click ᐅ to expand: Equity Derivatives - Premium Synthetic Prime Brokerage

Section 12.9(b)(iii) in a Nutshell™

Use at your own risk, campers!

12.9(b)(iii) If “Hedging Disruption” applies and it happens, the Hedging Party may terminate the Transaction on 2 Scheduled Trading Days’ notice, and the Determining Party will determine the Cancellation Amount payable under the Transaction. view template

Full text of Section 12.9(b)(iii)

12.9(b)(iii) If “Hedging Disruption” is specified in the related Confirmation to be applicable to a Transaction, then upon the occurrence of such an event the Hedging Party may elect, while the Hedging Disruption is continuing, to terminate the Transaction, upon at least two Scheduled Trading Days’ notice to the Non-Hedging Party specifying the date of such termination, in which event the Determining Party will determine the Cancellation Amount payable by one party to the other. view template

Comments? Questions? Suggestions? Requests? Insults? We’d love to 📧 hear from you. Sign up for our newsletter.

To be read in connection with the Hedging Disruption event at Section 12.9(a)(v).

@@ Line 1: / Line 1: @@
-{{eqderivanat|12.9(b)(iii)}}
+{{manual|DEQ|2002|12.9(b)(iii)|Section||medium}}
-To be read in connection with the {{eqderivprov|Hedging Disruption}} event. You may see a rider to this clause along the following lines:
-:“Where reasonably practical, the {{eqderivprov|Hedging Party}} must elect to terminate only the part of the {{isdaprov|Transaction}} with the {{eqderivprov|Number of Shares}} corresponding to the {{eqderivprov|Hedge Position}} that the {{eqderivprov|Hedging Disruption}} relates to, and the {{eqderivprov|Cancellation Amount}} is then determined over only the terminated part of the {{eqderivprov|Transaction}}”.
-{{Seealso}}
-*{{eqderivprov|Additional Disruption Events}} and
-*{{eqderivprov|Consenquences of an Additional Disuption Event}}, and
-*{{eqderivprov|triple cocktail}}.