Template:Nutshell Equity Derivatives 9.4: Difference between revisions

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Section {{eqderivprov|9.4}}. {{eqderivprov|Settlement Date}}. "{{eqderivprov|Settlement Date}}" means:
{{eqderivprov|9.4}}. “'''{{eqderivprov|Settlement Date}}'''” means:
:(a) for {{eqderivprov|Option Transaction}}s, the first {{eqderivprov|Clearance System Business Day}} occurring one {{eqderivprov|Settlement Cycle}} following the {{eqderivprov|Exercise Date}}; and  
:(a) for {{eqderivprov|Option Transaction}}s, the first {{eqderivprov|Clearance System Business Day}} one {{eqderivprov|Settlement Cycle}} after the {{eqderivprov|Exercise Date}}; and  
:(b) for {{eqderivprov|Forward Transaction}}s  and {{eqderivprov|Equity Swap Transaction}}s, the date specified (or if not specified, one {{eqderivprov|Settlement Cycle}} following the {{eqderivprov|Valuation Date}} (adjusted if not a {{eqderivprov|Clearance System Business Day}}) unless there is a {{eqderivprov|Settlement Disruption Event}} on the relevant date.  
:(b) for {{eqderivprov|Forward Transaction}}s  and {{eqderivprov|Equity Swap Transaction}}s, the specified date (or, failing that, one {{eqderivprov|Settlement Cycle}} after the {{eqderivprov|Valuation Date}} (adjusted for {{eqderivprov|Clearance System Business Day}}s).  
 
:HOWEVER  the {{eqderivprov|Settlement Date}} will be delayed until any {{eqderivprov|Settlement Disruption Event}} has lifted. If it doesn’t lift for 8 straight {{eqderivprov|Clearance System Business Day}}s then, if the {{eqderivprov|Shares}} can be delivered some other way, the {{eqderivprov|Settlement Date}} will be a settlement cycle after that eighth {{eqderivprov|Clearance System Business Day}}. Otherwise, it will just be postponed until delivery can be effected.  
If there is {{eqderivprov|Settlement Disruption Event}} on that date, the {{eqderivprov|Settlement Date}} will be the first  {{eqderivprov|Clearance System Business Day}} on which the {{eqderivprov|Settlement Disruption Event}} has lifted unless it doesn’t lift for 8 successive {{eqderivprov|Clearance System Business Day}}s, in which case:
:If only some {{eqderivprov|Shares}} in a {{eqderivprov|Basket}} are disrupted, the unaffected portion must be settled on schedule. <br>
:(x) if the {{eqderivprov|Shares}} can be delivered some other way, the {{eqderivprov|Settlement Date}} will be the date on which such a sale executed on that eighth {{eqderivprov|Clearance System Business Day}} would settle and
:(y) if not, the {{eqderivprov|Settlement Date}} will be postponed until delivery can be effected.  
 
If a {{eqderivprov|Settlement Disruption Event}} affects some but not all of the {{eqderivprov|Shares}} in a {{eqderivprov|Share Basket Transaction}}, the {{eqderivprov|Settlement Date}} for unaffected {{eqderivprov|Shares}} will be the original {{eqderivprov|Settlement Date}} and for affected {{eqderivprov|Shares}} will be determined as provided above.

Latest revision as of 16:03, 6 September 2018

9.4. “Settlement Date” means:

(a) for Option Transactions, the first Clearance System Business Day one Settlement Cycle after the Exercise Date; and
(b) for Forward Transactions and Equity Swap Transactions, the specified date (or, failing that, one Settlement Cycle after the Valuation Date (adjusted for Clearance System Business Days).
HOWEVER the Settlement Date will be delayed until any Settlement Disruption Event has lifted. If it doesn’t lift for 8 straight Clearance System Business Days then, if the Shares can be delivered some other way, the Settlement Date will be a settlement cycle after that eighth Clearance System Business Day. Otherwise, it will just be postponed until delivery can be effected.
If only some Shares in a Basket are disrupted, the unaffected portion must be settled on schedule.
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