Template:M summ Equity Derivatives 1.26: Difference between revisions

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-[[Related Exchange - Equity Derivatives Provision|Relevant]] to {{eqderivprov|Market Disruption Event}}. See also the related definition at "'''{{eqderivprov|Exchange}}'''”.
+[[Related Exchange - Equity Derivatives Provision|Related Exchange]] is relevant to {{eqderivprov|Market Disruption Event}}. See also the related definition at “'''{{eqderivprov|Exchange}}'''”.
-In each case, the relevant {{eqderivprov|Exchange}} or {{eqderivprov|Related Exchange}} is simply the exchange specified as such in the {{isdaprov|Confirmation}}.
+In each case, the relevant {{eqderivprov|Related Exchange}} will be specified in the {{isdaprov|Confirmation}} — the standard tends to be “{{eqderivprov|All Exchanges}}”), and these are exchanges on which “trading in ''futures or options contracts relating to'' such {{eqderivprov|Index}} or such {{eqderivprov|Share}}” takes place.
-There is a corresponding fallback to substitute exchanges  (what we our our nutshelly way call “{{eqderivprov|Alternative Exchange}}s”) to which trading has temporarily located, although it is expresses slightly differently (more succinctly) here.
+Section {{eqderivprov|1.26}} could have done with clearer punctuation in our humble view, but our best guess is that you determine the Related Exchange as follows:
+{{quote|
+*each “{{eqderivprov|Related Exchange}}” so specified in the {{eqderivprov|Confirmation}} — this could be in theory be an options exchange ''or'' a stock exchange, but for reasons set out below, we think it is meant to only be a futures or options exchange;
+*any successor to those specified {{eqderivprov|Related Exchange}}s, (also could be either, but) ''or''
+*any substitute exchange to the above to which trading ''in futures or options'' on the Index/Share has temporarily relocated, unless
+*the Confirm specifies “All Exchanges”, in which case “Related Exchange” means all exchange or quotation systems that material effect the overall market ''for futures or options on'' the Index/Share.
+}}
-===And the difference between {{eqderivprov|Exchange}} and {{eqderivprov|Related Exchange}} is what exactly?===
+Now you tell me, but this looks like an attempt to limit “{{eqderivprov|Related Exchange}}s” to options and futures exchanges, and leave stock exchanges to the definition of regular “{{eqderivprov|Exchange}}”s. This is corroborated by the fact that {{eqderivprov|Settlement Cycle}}, {{eqderivprov|Settlement Price}} and {{eqderivprov|Final Price}} which are relevant to delivering and valuing {{eqderivprov|Shares}}, only references “{{eqderivprov|Exchange}}s”, not “{{eqderivprov|Related Exchange}}s”, and most of the references to Related Exchanges in the defintions relate to the pricing of forwards and options — {{eqderivprov|In-the-Money}}ness of {{eqderivprov|Call}}s and {{eqderivprov|Put}}s, Trading Disruptions on options and futures, and in the related definition of {{eqderivprov|Options Exchange}}, which ''definitely'' is meant to be an, um, {{eqderivprov|Options Exchange}}.
-The difference between the two is the inclusion in {{eqderivprov|Related Exchange}} of the “{{eqderivprov|All Exchanges}}” [[proviso]]. In practice this is what you tend to see — “{{eqderivprov|Related Exchanges}}”, if used, is set to “{{eqderivprov|All Exchanges}}”:
-{{quote|...provided, however, that where “{{eqderivprov|All Exchanges}}” is specified as the {{eqderivprov|Related Exchange}} in the related {{isdaprov|Confirmation}}, “{{eqderivprov|Related Exchange}}” shall mean each exchange or quotation system where trading has a material effect (as determined by the {{eqderivprov|Calculation Agent}}) on the overall market for futures or options contracts relating to such {{eqderivprov|Index}} or such {{eqderivprov|Share}}.}}
+Then again, there is a definition of Options Exchange: what the ''necessary'' difference is between a {{eqderivprov|Related Exchange}} and {{eqderivprov|Options Exchange}}, we have not quite yet nutted out. Do write in if you have any ideas.