Commercially reasonable procedures - Equity Derivatives Provision

Equity Derivatives Anatomy™ →Go uptown 12.8(g) Commercially reasonable procedures used in determining a Cancellation Amount may include the following: (i) application to relevant market data from third parties pursuant to Section 12.8(c)(ii) above or information from internal sources pursuant to Section 12.8(c)(iii) above of pricing or other valuation models that are, at the time of the determination of the Cancellation Amount, used by the Determining Party in the regular course of its business in pricing or valuing transactions between the Determining Party and unrelated third parties that are similar to the relevant Transaction; and (ii) application of different valuation methods to the relevant Transaction depending on the type, complexity or size of the relevant Transaction. (view template) Resources About the Equity Derivatives Definitions | (full wikitext) | (nutshell wikitext) | Equity v credit derivatives showdown Hot topics Synthetic Prime Brokerage Anatomy | The Triple Cocktail | Cancellation and Payment | Calculation Agent TOC | 1 General Definitions | 2 Option Transactions | 3 Exercise of Options | 4 Forward Transactions | 5 Equity Swap Transactions | 6 Valuation | 7 Settlement | 8 Cash Settlement | 9 Physical Settlement | 10 Dividends | 11 Adjustments and Modifications | 12 Extraordinary Events · 12.8 Cancellation Amount · 12.9 Additional Disruption Events · 12.9 List of ADEs · 12.9(b) Consequences of ADEs | 13 Miscellaneous Index: Click ᐅ to expand: Equity Derivatives - Premium Synthetic Prime Brokerage Tell me more Sign up for our newsletter — or just get in touch: for ½ a weekly 🍺 you get to consult JC. Ask about it here.

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12.8(g) in a Nutshell™ _{(Equity Derivatives edition)}

12.8(g): “Commercially reasonable procedures” may include:

(i) Determining Party’s pricing and valuation models for similar transactions with third parties; and

(ii) different valuation methods depending on the type, complexity or size of the Transaction.

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Section 12.8. Cancellation Amount

12.8(a) “Cancellation Amount”

12.8(b) “Means of determination”

12.8(c) “Determination”

12.8(d) “Quotations”

12.8(e) “Liquidation of hedges”

12.8(f) “Determining Party”

12.8(g) “Commercially reasonable procedures”