From The Jolly Contrarian
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| === Fixing the {{eqderivprov|Paid Amount}} concept ===
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| So we have two problems: what to do if the [[record date]] for a {{eqderivprov|Dividend Amount}} falls ''before'' the [[trade date]] for a {{eqderivprov|Transaction}}, and what to do if the [[dividend payment date]] falls ''after'' the {{eqderivprov|Transaction}} terminates.
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| Neither of these contingencies, predictable though they seem to be, is addressed in the {{eqdefs}}. But help is at hand: the [[JC]] — errors and omissions excepted, all usual [[disclaimer]]s applying — humbly offers the following corrective for your [[Master Confirmation Agreement]]:
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| :“{{eqderivprov|Paid Amount}}” will apply, provided that:
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| ::(a) where the {{eqderivprov|Share}} were trading “[[ex-dividend]]” as of the {{isdadefsprov|Effective Date}}, the {{eqderivprov|Paid Amount}} will be zero; and
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| ::(b) where the {{isdaprov|Transaction}} terminates ''after'' the {{eqderivprov|Share}} commenced trading “[[ex-dividend]]” but ''before'' the scheduled {{eqderivprov|Dividend Payment Date}}, the {{eqderivprov|Equity Amount Payer}} will pay any {{eqderivprov|Paid Amount}} one [[settlement cycle]] following payment of the corresponding dividend by the {{eqderivprov|Issuer}} to holders of record of the {{eqderivprov|Share}}.
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Latest revision as of 09:15, 17 May 2022