Template:Nutshell Equity Derivatives 9.2: Difference between revisions

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-Section {{eqderivprov|9.2}}. '''{{eqderivprov|Physical Settlement of Forward Transactions}}'''. In respect of a {{eqderivprov|Settlement Date}} under a {{eqderivprov|Forward Transaction}} for which “'''{{eqderivprov|Physical Settlement}}'''” is applicable, on the relevant {{eqderivprov|Settlement Date}}: <br>
+{{eqderivprov|9.2}}. '''{{eqderivprov|Physical Settlement of Forward Transactions}}'''. For a {{eqderivprov|Settlement Date}} under a {{eqderivprov|Forward Transaction}} for which “'''{{eqderivprov|Physical Settlement}}'''” applies, on the relevant {{eqderivprov|Settlement Date}}: <br>
-:(a)	in respect of a {{eqderivprov|Share Forward Transaction}}: <br>
+:(a) For a {{eqderivprov|Share Forward Transaction}}: <br>
-::(i)	if “'''{{eqderivprov|Prepayment}}'''” is not applicable and “'''{{eqderivprov|Variable Obligation}}'''” is not applicable, then {{eqderivprov|Buyer}} will pay to {{eqderivprov|Seller}} an amount equal to the {{eqderivprov|Forward Price}} multiplied by the {{eqderivprov|Number of Shares}}, and {{eqderivprov|Seller}} will deliver to {{eqderivprov|Buyer}} the {{eqderivprov|Number of Shares to be Delivered}} and will pay to {{eqderivprov|Buyer}} the {{eqderivprov|Fractional Share Amount}}, [[if any]]; <br>
+::(i) Neither “'''{{eqderivprov|Prepayment}}'''” or “'''{{eqderivprov|Variable Obligation}}'''” applies:
-::(ii)	if “'''{{eqderivprov|Prepayment}}'''” is not applicable and “'''{{eqderivprov|Variable Obligation}}'''” is applicable, then {{eqderivprov|Buyer}} will pay to {{eqderivprov|Seller}} an amount equal to the {{eqderivprov|Forward Floor Price}} multiplied by the {{eqderivprov|Number of Shares}}, and {{eqderivprov|Seller}} will deliver to {{eqderivprov|Buyer}} the {{eqderivprov|Number of Shares to be Delivered}} and will pay to {{eqderivprov|Buyer}} the {{eqderivprov|Fractional Share Amount}}, if any; and <br>
+:::{{eqderivprov|Buyer}} will pay to {{eqderivprov|Seller}} an amount equal to ''{{eqderivprov|Forward Price}} x {{eqderivprov|Number of Shares}}'', and
-::(iii)	if “'''{{eqderivprov|Prepayment}}'''” is applicable, then {{eqderivprov|Seller}} will deliver to {{eqderivprov|Buyer}} the {{eqderivprov|Number of Shares to be Delivered}} and will pay to {{eqderivprov|Buyer}} the {{eqderivprov|Excess Dividend Amount}}, if any, and the {{eqderivprov|Fractional Share Amount}}, if any; and <br>
+:::{{eqderivprov|Seller}} will deliver the {{eqderivprov|Number of Shares to be Delivered}} and pay any {{eqderivprov|Fractional Share Amount}} to {{eqderivprov|Buyer}}; <br>
-:(b)	in respect of a {{eqderivprov|Share Basket Forward Transaction}}: <br>
+::(ii)	“'''{{eqderivprov|Prepayment}}'''” does not apply and “'''{{eqderivprov|Variable Obligation}}'''” applies:
-::(i)	if “'''{{eqderivprov|Prepayment}}'''” is not applicable and “'''{{eqderivprov|Variable Obligation}}'''” is not applicable, then {{eqderivprov|Buyer}} will pay to {{eqderivprov|Seller}} an amount equal to the {{eqderivprov|Forward Price}} multiplied by the {{eqderivprov|Number of Baskets}}, and, in respect of each {{eqderivprov|Issuer}} comprising the {{eqderivprov|Basket}}, {{eqderivprov|Seller}} will deliver to {{eqderivprov|Buyer}} the {{eqderivprov|Number of Shares}} of such {{eqderivprov|Issuer}} multiplied by the {{eqderivprov|Number of Baskets to be Delivered}} (rounded as provided in Section {{eqderivprov|9.6}}) and will pay to {{eqderivprov|Buyer}} the {{eqderivprov|Fractional Share Amount}}, if any; <br>
+:::{{eqderivprov|Buyer}} will pay to {{eqderivprov|Seller}} ''{{eqderivprov|Forward Floor Price}} x {{eqderivprov|Number of Shares}}''
-::(ii)	if “'''{{eqderivprov|Prepayment}}'''” is not applicable and “'''{{eqderivprov|Variable Obligation}}'''” is applicable, then {{eqderivprov|Buyer}} will pay to {{eqderivprov|Seller}} an amount equal to the {{eqderivprov|Forward Floor Price}} multiplied by the {{eqderivprov|Number of Baskets}}, and, in respect of each {{eqderivprov|Issuer}} comprising the {{eqderivprov|Basket}}, {{eqderivprov|Seller}} will deliver to {{eqderivprov|Buyer}} the {{eqderivprov|Number of Shares}} of such {{eqderivprov|Issuer}} multiplied by the {{eqderivprov|Number of Baskets to be Delivered}} (rounded as provided in Section {{eqderivprov|9.6}}) and will pay to {{eqderivprov|Buyer}} the {{eqderivprov|Fractional Share Amount}}, if any; and <br>
+:::{{eqderivprov|Seller}} will deliver the {{eqderivprov|Number of Shares to be Delivered}} and pay any {{eqderivprov|Fractional Share Amount}} to {{eqderivprov|Buyer}}; and <br>
-::(iii)	if “'''{{eqderivprov|Prepayment}}'''” is applicable, then, in respect of each {{eqderivprov|Issuer}} comprising the {{eqderivprov|Basket}}, {{eqderivprov|Seller}} will deliver to {{eqderivprov|Buyer}} the {{eqderivprov|Number of Shares}} of such {{eqderivprov|Issuer}} multiplied by the {{eqderivprov|Number of Baskets to be Delivered}} (rounded as provided in Section {{eqderivprov|9.6}}) and will pay to {{eqderivprov|Buyer}} the {{eqderivprov|Excess Dividend Amount}}, if any, and the {{eqderivprov|Fractional Share Amount}}, if any. <br>
+::(iii)	if “'''{{eqderivprov|Prepayment}}'''” applies, {{eqderivprov|Seller}} will deliver to {{eqderivprov|Buyer}} the {{eqderivprov|Number of Shares to be Delivered}} and will pay the {{eqderivprov|Excess Dividend Amount}}, if any, and any {{eqderivprov|Fractional Share Amount}}; and <br>
-Any such payment [[and/or]] such delivery will be made through the relevant {{eqderivprov|Clearance System}}({{eqderivprov|s}}) to the accounts of the {{eqderivprov|Buyer}} or the {{eqderivprov|Seller}}, as the case may be, specified in the related {{eqderivprov|Confirmation}}. <br>
+:(b) For a {{eqderivprov|Share Basket Forward Transaction}}: <br>
+::(i) Neither “'''{{eqderivprov|Prepayment}}'''” or “'''{{eqderivprov|Variable Obligation}}'''” applies:
+:::{{eqderivprov|Buyer}} will pay to {{eqderivprov|Seller}} an amount equal to ''{{eqderivprov|Forward Price}} x {{eqderivprov|Number of Baskets}}'', and
+:::{{eqderivprov|Seller}} will deliver to {{eqderivprov|Buyer}} ''{{eqderivprov|Number of Shares}} of each {{eqderivprov|Issuer}} in the {{eqderivprov|Basket}} x {{eqderivprov|Number of Baskets to be Delivered}}'' (rounded per Section {{eqderivprov|9.6}}) and will pay any {{eqderivprov|Fractional Share Amount}} to {{eqderivprov|Buyer}}; <br>
+::(ii)	“'''{{eqderivprov|Prepayment}}'''” does not apply and “'''{{eqderivprov|Variable Obligation}}'''” applies:
+:::{{eqderivprov|Buyer}} will pay to {{eqderivprov|Seller}} ''{{eqderivprov|Forward Floor Price}} x {{eqderivprov|Number of Baskets}}' and'
+:::{{eqderivprov|Seller}} will deliver to {{eqderivprov|Buyer}} ''{{eqderivprov|Number of Shares}} of each {{eqderivprov|Issuer}} in the {{eqderivprov|Basket}} x {{eqderivprov|Number of Baskets to be Delivered}}'' (rounded per Section {{eqderivprov|9.6}}) and will pay any {{eqderivprov|Fractional Share Amount}} to {{eqderivprov|Buyer}}; and <br>
+::(iii)	if “'''{{eqderivprov|Prepayment}}'''” applies for each {{eqderivprov|Issuer}} comprising the {{eqderivprov|Basket}}, {{eqderivprov|Seller}} will deliver to {{eqderivprov|Buyer}} ''{{eqderivprov|Number of Shares}} x {{eqderivprov|Number of Baskets to be Delivered}}'' (rounded per Section {{eqderivprov|9.6}}) and will pay any {{eqderivprov|Excess Dividend Amount}} or {{eqderivprov|Fractional Share Amount}} to {{eqderivprov|Buyer}}. <br>
+All payments and deliveries will be made through the {{eqderivprov|Clearance System}}s to the specified accounts of the {{eqderivprov|Buyer}} or the {{eqderivprov|Seller}}. <br>