Template:2002 ISDA Equity Derivatives Definitions 11.2(c): Difference between revisions
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{{eqderivprov|11.2(c)}} If "'''{{p|eq|Calculation Agent Adjustment (Share | {{eqderivprov|11.2(c)}} If "'''{{p|eq|Calculation Agent Adjustment (Share Transactions)|Calculation Agent Adjustment}}'''" is specified as the {{eqderivprov|Method of Adjustment}} in the <br>related {{csaprov|Confirmation}} of a {{eqderivprov|Share Transaction}} or {{eqderivprov|Share Basket Transaction}} (or if no {{eqderivprov|Method of Adjustment}} <br> is specified in the related {{eqderivprov|Confirmation}} for such {{eqderivprov|Transaction}}), then following the declaration by the <br>{{eqderivprov|Issuer}} of the terms of any {{eqderivprov|Potential Adjustment Event}}, the {{eqderivprov|Calculation Agent}} will determine whether <br>such {{eqderivprov|Potential Adjustment Event}} has a diluting or concentrative effect on the theoretical value of the <br>relevant {{eqderivprov|Shares}} and, if so, will (i) make the corresponding adjustment(s), if any, to any one or more of: <br> | ||
:(A) in respect of a {{eqderivprov|Share Option Transaction}} or a {{eqderivprov|Share Basket Option Transaction}}, <br>the {{eqderivprov|Strike Price}}, the {{eqderivprov|Number of Options}}, the {{eqderivprov|Option Entitlement}}, the {{eqderivprov|Knock-in Price}}, the Knockout <br>Price, and the relevant {{eqderivprov|Number of Shares}}; <br> | :(A) in respect of a {{eqderivprov|Share Option Transaction}} or a {{eqderivprov|Share Basket Option Transaction}}, <br>the {{eqderivprov|Strike Price}}, the {{eqderivprov|Number of Options}}, the {{eqderivprov|Option Entitlement}}, the {{eqderivprov|Knock-in Price}}, the Knockout <br>Price, and the relevant {{eqderivprov|Number of Shares}}; <br> | ||
:(B) in respect of a {{eqderivprov|Share Forward Transaction}} or a Share Basket Forward <br>Transaction, the {{eqderivprov|Forward Price}}, the {{eqderivprov|Forward Floor Price}}, the {{eqderivprov|Forward Cap Price}}, the Knock-in <br>Price, the {{eqderivprov|Knock-out Price}}, and the relevant {{eqderivprov|Number of Shares}}; <br> | :(B) in respect of a {{eqderivprov|Share Forward Transaction}} or a Share Basket Forward <br>Transaction, the {{eqderivprov|Forward Price}}, the {{eqderivprov|Forward Floor Price}}, the {{eqderivprov|Forward Cap Price}}, the Knock-in <br>Price, the {{eqderivprov|Knock-out Price}}, and the relevant {{eqderivprov|Number of Shares}}; <br> | ||
:(C) in respect of a {{eqderivprov|Share Swap Transaction}} or a {{eqderivprov|Share Basket Swap Transaction}}, the <br>{{eqderivprov|Initial Price}}, the {{eqderivprov|Equity Notional Amount}}, the {{eqderivprov|Knock-in Price}}, the {{eqderivprov|Knock-out Price}}, and the <br>relevant {{eqderivprov|Number of Shares}}; <br> | :(C) in respect of a {{eqderivprov|Share Swap Transaction}} or a {{eqderivprov|Share Basket Swap Transaction}}, the <br>{{eqderivprov|Initial Price}}, the {{eqderivprov|Equity Notional Amount}}, the {{eqderivprov|Knock-in Price}}, the {{eqderivprov|Knock-out Price}}, and the <br>relevant {{eqderivprov|Number of Shares}}; <br> | ||
and, in any case, any other variable relevant to the exercise, settlement, payment or other terms of that <br>{{eqderivprov|Transaction}} as the {{eqderivprov|Calculation Agent}} determines appropriate to account for that diluting or concentrative <br>effect (provided that no adjustments will be made to account solely for changes in volatility, expected <br>dividends, stock loan rate or liquidity relative to the relevant {{eqderivprov|Share}}) and (ii) determine the effective <br>date(s) of the adjustment(s). The {{eqderivprov|Calculation Agent}} may (but need not) determine the appropriate <br>adjustment(s) by reference to the adjustment(s) in respect of such {{eqderivprov|Potential Adjustment Event}} made by an <br>options exchange to options on the relevant {{eqderivprov|Shares}} traded on such options exchange. <br> | and, in any case, any other variable relevant to the exercise, settlement, payment or other terms of that <br>{{eqderivprov|Transaction}} as the {{eqderivprov|Calculation Agent}} determines appropriate to account for that diluting or concentrative <br>effect (provided that no adjustments will be made to account solely for changes in volatility, expected <br>dividends, stock loan rate or liquidity relative to the relevant {{eqderivprov|Share}}) and (ii) determine the effective <br>date(s) of the adjustment(s). The {{eqderivprov|Calculation Agent}} may (but need not) determine the appropriate <br>adjustment(s) by reference to the adjustment(s) in respect of such {{eqderivprov|Potential Adjustment Event}} made by an <br>options exchange to options on the relevant {{eqderivprov|Shares}} traded on such options exchange. <br> |
Revision as of 14:49, 12 November 2012
11.2(c) If "Calculation Agent Adjustment" is specified as the Method of Adjustment in the
related Confirmation of a Share Transaction or Share Basket Transaction (or if no Method of Adjustment
is specified in the related Confirmation for such Transaction), then following the declaration by the
Issuer of the terms of any Potential Adjustment Event, the Calculation Agent will determine whether
such Potential Adjustment Event has a diluting or concentrative effect on the theoretical value of the
relevant Shares and, if so, will (i) make the corresponding adjustment(s), if any, to any one or more of:
- (A) in respect of a Share Option Transaction or a Share Basket Option Transaction,
the Strike Price, the Number of Options, the Option Entitlement, the Knock-in Price, the Knockout
Price, and the relevant Number of Shares; - (B) in respect of a Share Forward Transaction or a Share Basket Forward
Transaction, the Forward Price, the Forward Floor Price, the Forward Cap Price, the Knock-in
Price, the Knock-out Price, and the relevant Number of Shares; - (C) in respect of a Share Swap Transaction or a Share Basket Swap Transaction, the
Initial Price, the Equity Notional Amount, the Knock-in Price, the Knock-out Price, and the
relevant Number of Shares;
and, in any case, any other variable relevant to the exercise, settlement, payment or other terms of that
Transaction as the Calculation Agent determines appropriate to account for that diluting or concentrative
effect (provided that no adjustments will be made to account solely for changes in volatility, expected
dividends, stock loan rate or liquidity relative to the relevant Share) and (ii) determine the effective
date(s) of the adjustment(s). The Calculation Agent may (but need not) determine the appropriate
adjustment(s) by reference to the adjustment(s) in respect of such Potential Adjustment Event made by an
options exchange to options on the relevant Shares traded on such options exchange.