Template:2002 ISDA Equity Derivatives Definitions 1.44: Difference between revisions
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Section {{eqderivprov|1.44}}. '''{{eqderivprov|Knock-in Event}}'''. <br> | Section {{eqderivprov|1.44}}. '''{{eqderivprov|Knock-in Event}}'''. <br> | ||
:(a) If “'''{{eqderivprov|Knock-in Event}}'''” is specified as applicable to a {{eqderivprov|Transaction}}, then unless otherwise specified in the related {{eqderivprov|Confirmation}}, a party’s right to exercise an {{eqderivprov|Option}} under an {{eqderivprov|Option Transaction}} and its right to receive, or its obligation to make, a payment or delivery under an {{eqderivprov|Option Transaction}} (once exercised or deemed exercised), a {{eqderivprov|Forward Transaction}} or {{eqderivprov|Equity Swap Transaction}} where such right or obligation is subject to a Knock-in Event shall be conditional upon the occurrence of the Knock- in Event on any {{eqderivprov|Knock-in Determination Day}} as of the time of such exercise, deemed exercise, payment or delivery, and the parties shall have any other rights and obligations set forth in the related {{eqderivprov|Confirmation}} from and after the occurrence of the Knock-in Event. | :(a) If “'''{{eqderivprov|Knock-in Event}}'''” is specified as applicable to a {{eqderivprov|Transaction}}, then unless otherwise specified in the related {{eqderivprov|Confirmation}}, a party’s right to exercise an {{eqderivprov|Option}} under an {{eqderivprov|Option Transaction}} and its right to receive, or its obligation to make, a payment or delivery under an {{eqderivprov|Option Transaction}} (once exercised or deemed exercised), a {{eqderivprov|Forward Transaction}} or {{eqderivprov|Equity Swap Transaction}} where such right or obligation is subject to a Knock-in Event shall be conditional upon the occurrence of the {{eqderivprov|Knock-in Event}} on any {{eqderivprov|Knock-in Determination Day}} as of the time of such exercise, deemed exercise, payment or delivery, and the parties shall have any other rights and obligations set forth in the related {{eqderivprov|Confirmation}} from and after the occurrence of the {{eqderivprov|Knock-in Event}}. | ||
:(b) “'''{{eqderivprov|Knock-in Event}}'''” means the event or occurrence specified as such in the related {{eqderivprov|Confirmation}}. In the event that the related {{eqderivprov|Confirmation}} does not specify such an event or occurrence but specifies a {{eqderivprov|Knock-in Reference Security}} and/or a {{eqderivprov|Knock-in Price}}, a Knock-in Event shall occur for a {{eqderivprov|Transaction}} for which such {{eqderivprov|Knock-in Reference Security}} is also the {{eqderivprov|Index}}, Share or {{eqderivprov|Basket}} specified in the related {{eqderivprov|Confirmation}}: (i) where, on the {{eqderivprov|Trade Date}}, the {{eqderivprov|Knock-in Price}} is greater than the {{eqderivprov|Initial Price}}, {{eqderivprov|Strike Price}}, {{eqderivprov|Forward Price}} or other initial level set for the {{eqderivprov|Transaction}}, when the level, price or amount of the {{eqderivprov|Knock-in Reference Security}} determined as of the {{eqderivprov|Knock-in Valuation Time}} on any {{eqderivprov|Knock-in Determination Day}} is greater than or equal to the {{eqderivprov|Knock-in Price}}; and (ii) where, on the {{eqderivprov|Trade Date}}, the {{eqderivprov|Knock-in Price}} is less than the {{eqderivprov|Initial Price}}, {{eqderivprov|Strike Price}}, {{eqderivprov|Forward Price}} or other initial level set for the {{eqderivprov|Transaction}}, when the level, price or amount of the {{eqderivprov|Knock-in Reference Security}} determined as of the {{eqderivprov|Knock-in Valuation Time}} on any {{eqderivprov|Knock-in Determination Day}} is less than or equal to the {{eqderivprov|Knock-in Price}}. In the event of a dispute between the parties as to whether a Knock-in Event has occurred, the {{eqderivprov|Calculation Agent}} shall determine whether a Knock-in Event has occurred. <br> | :(b) “'''{{eqderivprov|Knock-in Event}}'''” means the event or occurrence specified as such in the related {{eqderivprov|Confirmation}}. In the event that the related {{eqderivprov|Confirmation}} does not specify such an event or occurrence but specifies a {{eqderivprov|Knock-in Reference Security}} [[and/or]] a {{eqderivprov|Knock-in Price}}, a {{eqderivprov|Knock-in Event}} shall occur for a {{eqderivprov|Transaction}} for which such {{eqderivprov|Knock-in Reference Security}} is also the {{eqderivprov|Index}}, {{eqderivprov|Share}} or {{eqderivprov|Basket}} specified in the related {{eqderivprov|Confirmation}}: | ||
::(i) where, on the {{eqderivprov|Trade Date}}, the {{eqderivprov|Knock-in Price}} is greater than the {{eqderivprov|Initial Price}}, {{eqderivprov|Strike Price}}, {{eqderivprov|Forward Price}} or other initial level set for the {{eqderivprov|Transaction}}, when the level, price or amount of the {{eqderivprov|Knock-in Reference Security}} determined as of the {{eqderivprov|Knock-in Valuation Time}} on any {{eqderivprov|Knock-in Determination Day}} is greater than or equal to the {{eqderivprov|Knock-in Price}}; and | |||
::(ii) where, on the {{eqderivprov|Trade Date}}, the {{eqderivprov|Knock-in Price}} is less than the {{eqderivprov|Initial Price}}, {{eqderivprov|Strike Price}}, {{eqderivprov|Forward Price}} or other initial level set for the {{eqderivprov|Transaction}}, when the level, price or amount of the {{eqderivprov|Knock-in Reference Security}} determined as of the {{eqderivprov|Knock-in Valuation Time}} on any {{eqderivprov|Knock-in Determination Day}} is less than or equal to the {{eqderivprov|Knock-in Price}}. | |||
:In the event of a dispute between the parties as to whether a Knock-in Event has occurred, the {{eqderivprov|Calculation Agent}} shall determine whether a Knock-in Event has occurred. <br> | |||
Latest revision as of 17:39, 9 May 2022
Section 1.44. Knock-in Event.
- (a) If “Knock-in Event” is specified as applicable to a Transaction, then unless otherwise specified in the related Confirmation, a party’s right to exercise an Option under an Option Transaction and its right to receive, or its obligation to make, a payment or delivery under an Option Transaction (once exercised or deemed exercised), a Forward Transaction or Equity Swap Transaction where such right or obligation is subject to a Knock-in Event shall be conditional upon the occurrence of the Knock-in Event on any Knock-in Determination Day as of the time of such exercise, deemed exercise, payment or delivery, and the parties shall have any other rights and obligations set forth in the related Confirmation from and after the occurrence of the Knock-in Event.
- (b) “Knock-in Event” means the event or occurrence specified as such in the related Confirmation. In the event that the related Confirmation does not specify such an event or occurrence but specifies a Knock-in Reference Security and/or a Knock-in Price, a Knock-in Event shall occur for a Transaction for which such Knock-in Reference Security is also the Index, Share or Basket specified in the related Confirmation:
- (i) where, on the Trade Date, the Knock-in Price is greater than the Initial Price, Strike Price, Forward Price or other initial level set for the Transaction, when the level, price or amount of the Knock-in Reference Security determined as of the Knock-in Valuation Time on any Knock-in Determination Day is greater than or equal to the Knock-in Price; and
- (ii) where, on the Trade Date, the Knock-in Price is less than the Initial Price, Strike Price, Forward Price or other initial level set for the Transaction, when the level, price or amount of the Knock-in Reference Security determined as of the Knock-in Valuation Time on any Knock-in Determination Day is less than or equal to the Knock-in Price.
- In the event of a dispute between the parties as to whether a Knock-in Event has occurred, the Calculation Agent shall determine whether a Knock-in Event has occurred.