Template:Nutshell Equity Derivatives 9.4: Difference between revisions

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Section {{eqderivprov|9.4}}. {{eqderivprov|Settlement Date}}. "{{eqderivprov|Settlement Date}}" means:
Section {{eqderivprov|9.4}}. {{eqderivprov|Settlement Date}}. "{{eqderivprov|Settlement Date}}" means:
:(a) for {{eqderivprov|Option Transaction}}s, the first {{eqderivprov|Clearance System Business Day}} occurring one {{eqderivprov|Settlement Cycle}} following the {{eqderivprov|Exercise Date}}; and  
:(a) for {{eqderivprov|Option Transaction}}s, the first {{eqderivprov|Clearance System Business Day}} occurring one {{eqderivprov|Settlement Cycle}} after the {{eqderivprov|Exercise Date}}; and  
:(b) for {{eqderivprov|Forward Transaction}}s  and {{eqderivprov|Equity Swap Transaction}}s, the date specified (or if not specified, one {{eqderivprov|Settlement Cycle}} following the {{eqderivprov|Valuation Date}} (adjusted if not a {{eqderivprov|Clearance System Business Day}}) unless there is a {{eqderivprov|Settlement Disruption Event}} on the relevant date.  
:(b) for {{eqderivprov|Forward Transaction}}s  and {{eqderivprov|Equity Swap Transaction}}s, the date specified as such (or failing that one {{eqderivprov|Settlement Cycle}} after the {{eqderivprov|Valuation Date}} (adjusted for {{eqderivprov|Clearance System Business Day}}s).  


If there is {{eqderivprov|Settlement Disruption Event}} on that date, the {{eqderivprov|Settlement Date}} will be delayed until it has lifted unless it doesn’t lift for 8 successive {{eqderivprov|Clearance System Business Day}}s, in which case if the {{eqderivprov|Shares}} can be delivered some other way, the {{eqderivprov|Settlement Date}} will be the date on which a sale executed on that eighth {{eqderivprov|Clearance System Business Day}} would settle. If they can't, the {{eqderivprov|Settlement Date}} will be postponed until delivery can be effected.  
HOWEVER  the {{eqderivprov|Settlement Date}} will be delayed if there is {{eqderivprov|Settlement Disruption Event}} until it has lifted. If it doesn’t lift for 8 successive {{eqderivprov|Clearance System Business Day}}s then, if the {{eqderivprov|Shares}} can be delivered some other way, the {{eqderivprov|Settlement Date}} will be a settlement cycle after that eighth {{eqderivprov|Clearance System Business Day}}. Otherwise it will just be postponed until delivery can be effected.  


If a {{eqderivprov|Settlement Disruption Event}} affects some but not all of the {{eqderivprov|Shares}} in a {{eqderivprov|Share Basket Transaction}}, the {{eqderivprov|Settlement Date}} for unaffected {{eqderivprov|Shares}} will be the original {{eqderivprov|Settlement Date}} and for affected {{eqderivprov|Shares}} will be determined as provided above.
If a {{eqderivprov|Settlement Disruption Event}} affects only some {{eqderivprov|Shares}} in a basket, the unaffected portion will be settled without any such delay.

Revision as of 10:53, 16 December 2015

Section 9.4. Settlement Date. "Settlement Date" means:

(a) for Option Transactions, the first Clearance System Business Day occurring one Settlement Cycle after the Exercise Date; and
(b) for Forward Transactions and Equity Swap Transactions, the date specified as such (or failing that one Settlement Cycle after the Valuation Date (adjusted for Clearance System Business Days).

HOWEVER the Settlement Date will be delayed if there is Settlement Disruption Event until it has lifted. If it doesn’t lift for 8 successive Clearance System Business Days then, if the Shares can be delivered some other way, the Settlement Date will be a settlement cycle after that eighth Clearance System Business Day. Otherwise it will just be postponed until delivery can be effected.

If a Settlement Disruption Event affects only some Shares in a basket, the unaffected portion will be settled without any such delay.

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