Template:M gen Equity Derivatives 12.9: Difference between revisions
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Section {{eqderivprov|12.9}} has seven elective “{{eqderivprov|Additional Disruption Events}}”. These grew out of consensus market practice after the publication of the 1996 Equity | Section {{eqderivprov|12.9}} has seven elective “{{eqderivprov|Additional Disruption Events}}”. These grew out of consensus market practice after the publication of the 1996 Equity Derivative Definitions. | ||
{{eqderivprov|Additional Disruption Events}} are elective, so don’t apply unless specifically turned on. There are overlaps: {{eqderivprov|Change in Law}} and {{eqderivprov|Hedging Disruption}}, for example. | {{eqderivprov|Additional Disruption Events}} are elective, so don’t apply unless specifically turned on. There are overlaps: {{eqderivprov|Change in Law}} and {{eqderivprov|Hedging Disruption}}, for example. | ||
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Given that {{eqderivprov|Change in Law}} contains no cure period and {{eqderivprov|Hedging Disruption}} contains a two {{eqderivprov|Scheduled Trading Days}}’ cure period, parties should consider specifying a priority between the two {{eqderivprov|Additional Disruption Events}} in the related {{eqderivprov|Confirmation}}. | Given that {{eqderivprov|Change in Law}} contains no cure period and {{eqderivprov|Hedging Disruption}} contains a two {{eqderivprov|Scheduled Trading Days}}’ cure period, parties should consider specifying a priority between the two {{eqderivprov|Additional Disruption Events}} in the related {{eqderivprov|Confirmation}}. | ||
{{eqderivprov|Failure to Deliver}} applies only to {{eqderivprov|Physically-settled}} {{eqderivprov| | {{eqderivprov|Failure to Deliver}} applies only to {{eqderivprov|Physically-settled}} {{eqderivprov|Transaction}}s. In the [[synthetic equity]] world, one doesn’t ride the physically settled bus, so that is one more reason we don’t let it trouble the scorers. | ||
Latest revision as of 13:49, 28 February 2022
Section 12.9 has seven elective “Additional Disruption Events”. These grew out of consensus market practice after the publication of the 1996 Equity Derivative Definitions.
Additional Disruption Events are elective, so don’t apply unless specifically turned on. There are overlaps: Change in Law and Hedging Disruption, for example.
Given that Change in Law contains no cure period and Hedging Disruption contains a two Scheduled Trading Days’ cure period, parties should consider specifying a priority between the two Additional Disruption Events in the related Confirmation.
Failure to Deliver applies only to Physically-settled Transactions. In the synthetic equity world, one doesn’t ride the physically settled bus, so that is one more reason we don’t let it trouble the scorers.