12.7(c) - Equity Derivatives Provision: Difference between revisions
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{{eqderivprov|12.7(c)}} For any {{eqderivprov|Forward Transaction}} or {{eqderivprov|Equity Swap Transaction}}, such {{eqderivprov|Transaction}} shall be cancelled and the relevant party or parties (as specified below) shall determine the {{eqderivprov|Cancellation Amount}} in respect of such cancelled {{eqderivprov|Transaction}}. <br> | {{eqderivprov|12.7(c)}} For any {{eqderivprov|Forward Transaction}} or {{eqderivprov|Equity Swap Transaction}}, such {{eqderivprov|Transaction}} shall be cancelled and the relevant party or parties (as specified below) shall determine the {{eqderivprov|Cancellation Amount}} in respect of such cancelled {{eqderivprov|Transaction}}. <br> | ||
:(i) In respect of a cancelled {{eqderivprov|Transaction}} where there is one {{eqderivprov|Determining Party}}, the {{eqderivprov|Determining Party}} will calculate the {{eqderivprov|Cancellation Amount}} and will determine which party will | :(i) In respect of a cancelled {{eqderivprov|Transaction}} where there is one {{eqderivprov|Determining Party}}, the {{eqderivprov|Determining Party}} will calculate the {{eqderivprov|Cancellation Amount}} and will determine which party will pay such amount. <br> | ||
pay such amount. <br> | |||
:(ii) In respect of a cancelled {{eqderivprov|Transaction}} where there are two {{eqderivprov|Determining Parties}}, each party will calculate a {{eqderivprov|Cancellation Amount}} and an amount will be payable equal to one-half of the difference between the {{eqderivprov|Cancellation Amount}} of the party with the higher {{eqderivprov|Cancellation Amount}} ("X") and the {{eqderivprov|Cancellation Amount}} of the party with the lower {{eqderivprov|Cancellation Amount}} ("Y") and Y shall pay it to X. <br> | :(ii) In respect of a cancelled {{eqderivprov|Transaction}} where there are two {{eqderivprov|Determining Parties}}, each party will calculate a {{eqderivprov|Cancellation Amount}} and an amount will be payable equal to one-half of the difference between the {{eqderivprov|Cancellation Amount}} of the party with the higher {{eqderivprov|Cancellation Amount}} ("X") and the {{eqderivprov|Cancellation Amount}} of the party with the lower {{eqderivprov|Cancellation Amount}} ("Y") and Y shall pay it to X. <br> | ||
Revision as of 11:42, 11 August 2014
12.7(c) For any Forward Transaction or Equity Swap Transaction, such Transaction shall be cancelled and the relevant party or parties (as specified below) shall determine the Cancellation Amount in respect of such cancelled Transaction.
- (i) In respect of a cancelled Transaction where there is one Determining Party, the Determining Party will calculate the Cancellation Amount and will determine which party will pay such amount.
- (ii) In respect of a cancelled Transaction where there are two Determining Parties, each party will calculate a Cancellation Amount and an amount will be payable equal to one-half of the difference between the Cancellation Amount of the party with the higher Cancellation Amount ("X") and the Cancellation Amount of the party with the lower Cancellation Amount ("Y") and Y shall pay it to X.