Liquidation of hedges - Equity Derivatives Provision: Difference between revisions
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{{eqderivanat|12.8(e)|}} | {{eqderivanat|12.8(e)|}} | ||
This makes it clear that on a {{eqderivprov|Hedging Disruption}}, for example, the {{eqderivprov|Determining Party}} can pass on at least the [[market risk]] of replacing any disrupted hedge. (And probably the [[credit risk]] too, though where the hedge is a cash trade settling [[DVP]] there would be no credit exposure). | This makes it clear that on a {{eqderivprov|Hedging Disruption}}, for example, the {{eqderivprov|Determining Party}} can pass on at least the [[market risk]] of replacing any disrupted hedge. (And probably the [[credit risk]] too, though where the hedge is a cash trade settling [[DVP]] there would be no credit exposure). | ||
{{2002 ISDA Equity Derivatives Definitions Section 12.8 TOC}} | {{2002 ISDA Equity Derivatives Definitions Section 12.8 TOC}} | ||
Revision as of 12:19, 18 January 2020
This makes it clear that on a Hedging Disruption, for example, the Determining Party can pass on at least the market risk of replacing any disrupted hedge. (And probably the credit risk too, though where the hedge is a cash trade settling DVP there would be no credit exposure).
Section 12.8. Cancellation Amount
- 12.8(a) “Cancellation Amount”
- 12.8(b) “Means of determination”
- 12.8(c) “Determination”
- 12.8(d) “Quotations”
- 12.8(e) “Liquidation of hedges”
- 12.8(f) “Determining Party”
- 12.8(g) “Commercially reasonable procedures”