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Template:M summ Equity Derivatives 12.8(a): Difference between revisions
Template:M summ Equity Derivatives 12.8(a) (view source)
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{{eqderivprov|Cancellation Amount}} is a beast of a definition. But when you boil it down, it’s pretty straightforward. It applies when terminating a {{eqderivprov|Transaction}} following an {{eqderivprov|Extraordinary Event}} or an {{eqderivprov|Additional Disruption Event}}. | {{eqderivprov|Cancellation Amount}} is a beast of a definition. But when you boil it down, it’s pretty straightforward. It applies when terminating a {{eqderivprov|Transaction}} following an {{eqderivprov|Extraordinary Event}} or an {{eqderivprov|Additional Disruption Event}}. Importantly, by dint of Section {{eqderivprov|12.8(e)}}, the {{eqderivprov|Determining Party}} may pass through hedge breakage costs and losses. | ||
Importantly, by dint of Section {{eqderivprov|12.8(e)}}, the {{eqderivprov|Determining Party}} may pass through hedge breakage costs and losses. | |||
===Geopolitical events=== | ===Geopolitical events=== | ||
Now, what gains or losses might the {{eqderivprov|Determining Party}} incur in replacing the material terms of the {{eqderivprov|Transaction}} if, due to wars, sanctions and other miscellaneous geopolitical hanky-panky, a market gets totally shut down? If, for example, the outside world has imposed economic sanctions on the jurisdiction in which your {{eqderivprov|Share}}s trade (as, at the time of writing,<ref>Feburary 2022.</ref> seems far possible for Russia), of if the {{eqderivprov|Share}}s’ jurisdiction itself imposes sanctions on money coming in from or going out to the outside world (as did Greece, for a brief moment, in 2015)? | Now, what gains or losses might the {{eqderivprov|Determining Party}} incur in replacing the material terms of the {{eqderivprov|Transaction}} if, due to wars, sanctions and other miscellaneous geopolitical hanky-panky, a market gets totally shut down? If, for example, the outside world has imposed economic sanctions on the jurisdiction in which your {{eqderivprov|Share}}s trade (as, at the time of writing,<ref>Feburary 2022.</ref> seems far possible for Russia), of if the {{eqderivprov|Share}}s’ jurisdiction itself imposes sanctions on money coming in from or going out to the outside world (as did Greece, for a brief moment, in 2015)? | ||