Template:Nutshell Equity Derivatives 11.3: Difference between revisions

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Section {{eqderivprov|11.3}}. '''{{eqderivprov|Adjustments to Certain Share Transactions and Share Basket Transactions in European Currencies}}'''. In respect of a {{eqderivprov|Share Transaction}} or {{eqderivprov|Share Basket Transaction}} relating to {{eqderivprov|Shares}} originally quoted, listed [[and/or]] dealt as of the {{eqderivprov|Trade Date}} in a currency of a member state of the European Union that has not adopted the single currency in accordance with the {{eqderivprov|EC Treaty}}, if such {{eqderivprov|Shares}} are at any time after the {{eqderivprov|Trade Date}} quoted, listed [[and/or]] dealt exclusively in {{eqderivprov|euro}} on the relevant {{eqderivprov|Exchange}} or, where no {{eqderivprov|Exchange}} is specified, the principal market on which those {{eqderivprov|Shares}} are traded, then the {{eqderivprov|Calculation Agent}} will adjust any [[one or more]] of the {{eqderivprov|Strike Price}}, the {{eqderivprov|Forward Price}}, the {{eqderivprov|Forward Floor Price}}, the {{eqderivprov|Forward Cap Price}}, the {{eqderivprov|Knock-in Price}}, the {{eqderivprov|Knock-out Price}}, the {{eqderivprov|Settlement Price}}, the {{eqderivprov|Initial Price}}, the {{eqderivprov|Final Price}} and any other variable relevant to the terms of the {{eqderivprov|Transaction}} as the {{eqderivprov|Calculation Agent}} determines appropriate to preserve the economic terms of the {{eqderivprov|Transaction}}. The {{eqderivprov|Calculation Agent}} will make any conversion necessary for purposes of any such adjustment as of the {{eqderivprov|Valuation Time}} at an appropriate mid-market spot rate of exchange determined by the {{eqderivprov|Calculation Agent}} prevailing as of the {{eqderivprov|Valuation Time}}. No adjustments under this Section {{eqderivprov|11.3}} will affect the currency denomination of any payment obligation arising out of the {{eqderivprov|Transaction}}. <br>
{{eqderivprov|11.3}}. '''{{eqderivprov|Adjustments to Certain Share Transactions and Share Basket Transactions in European Currencies}}'''. If any {{eqderivprov|Shares}} were quoted in a pre-[[Euro]] currency after the {{eqderivprov|Trade Date}} quoted exclusively in {{eqderivprov|euro}} on the relevant {{eqderivprov|Exchange}} or principal market, the {{eqderivprov|Calculation Agent}} will adjust any variable relevant to the {{eqderivprov|Transaction}} to preserve the economic terms of the {{eqderivprov|Transaction}}. The {{eqderivprov|Calculation Agent}} will make necessary conversions as of the {{eqderivprov|Valuation Time}} at an appropriate mid-market spot rate as at the {{eqderivprov|Valuation Time}}. No adjustments under this Section will affect the denomination of any payment due under the {{eqderivprov|Transaction}}. <br>

Latest revision as of 13:41, 12 May 2022

11.3. Adjustments to Certain Share Transactions and Share Basket Transactions in European Currencies. If any Shares were quoted in a pre-Euro currency after the Trade Date quoted exclusively in euro on the relevant Exchange or principal market, the Calculation Agent will adjust any variable relevant to the Transaction to preserve the economic terms of the Transaction. The Calculation Agent will make necessary conversions as of the Valuation Time at an appropriate mid-market spot rate as at the Valuation Time. No adjustments under this Section will affect the denomination of any payment due under the Transaction.

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