Valuation Date - Equity Derivatives Provision: Difference between revisions
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{{eqderivanat|6.2}} | {{eqderivanat|6.2}} | ||
The {{eqderivprov|Valuation Date}} comes in handy if you are restriking your {{isdaprov|Transaction}}s periodically, as you are likely to be doing if you are providing [[synthetic prime brokerage]] — being as it basically is, an undated [[delta-one]] exposure to equities delivered through the glorious prism of equity derivatives. Your [[prime broker]] will not want to run indeterminate exposures to shares, even if they are collateralised daily, so restriking the shares periodically can zero out whatever the residual risk is in the paranoid eyes of your financial controllers. | |||
Revision as of 08:38, 19 September 2019
Template:Eqderivanat The Valuation Date comes in handy if you are restriking your Transactions periodically, as you are likely to be doing if you are providing synthetic prime brokerage — being as it basically is, an undated delta-one exposure to equities delivered through the glorious prism of equity derivatives. Your prime broker will not want to run indeterminate exposures to shares, even if they are collateralised daily, so restriking the shares periodically can zero out whatever the residual risk is in the paranoid eyes of your financial controllers.