Template:Calculation agent versus determination agent: Difference between revisions

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In theory (though almost never in practice<ref>If ''{{eqderivprov|Calculation Agent}} == [[Dealer]]'', and ''[[Dealer]] == {{eqderivprov|Hedging Party}}'', and ''{{eqderivprov|Hedging Party}} == {{eqderivprov|Determining Party}}'', then ''{{eqderivprov|Calculation Agent}} == {{eqderivprov|Determining Party}}''.</ref>) the {{eqderivprov|Hedging Party}} might not be the {{eqderivprov|Calculation Agent}}.  
In theory (though almost never in practice<ref>If ''{{eqderivprov|Calculation Agent}} == [[Dealer]]'', and ''[[Dealer]] == {{eqderivprov|Hedging Party}}'', and ''{{eqderivprov|Hedging Party}} == {{eqderivprov|Determining Party}}'', then ''{{eqderivprov|Calculation Agent}} == {{eqderivprov|Determining Party}}''.</ref>) the {{eqderivprov|Hedging Party}} might not be the {{eqderivprov|Calculation Agent}}.  


In theory, too, the {{eqderivprov|Hedging Party}} might not be named the {{eqderivprov|Determining Party}}. Which is kind of awkward, since the Cancellation Amount is couched in terms of the cost to the determining Party of unwinding, liquidating or re-establishing its hedge — which it would only do if it was, like, ''[[hedging]]''.
In theory, too, the {{eqderivprov|Hedging Party}} might not be named the {{eqderivprov|Determining Party}}. Which is kind of awkward, since the {{eqderivprov|Cancellation Amount}} is couched in terms of the cost to the determining Party of unwinding, liquidating or re-establishing its hedge — which it would only do if it was, like, ''[[hedging]]''.


Lastly, note that if your investment bank is as left-handedly configured as some [[Amwell J]] has come across<ref>AND WHO SHALL REMAIN NAMELESS.</ref>, the group entity writing the equity swaps might not be the same as the one doing the physical hedging of those swap obligations (with a back-to-back trade between them, for example), so the Hedging Party/Determining Party might not be either party to the actual {{isdama}} at all.
Lastly, note that if your investment bank is as left-handedly configured as some the [[JC]] has come across,<ref>AND WHO SHALL REMAIN NAMELESS.</ref> the group entity writing the equity swaps might not be the same as the one doing the physical hedging of those swap obligations (with a back-to-back trade between them, for example), so the Hedging Party/Determining Party might not be either party to the actual {{isdama}} at all.


''So'' confusing.
''So'' confusing.
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