Template:Capsule options exchange adjustment: Difference between revisions

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===Where there are no [[Options Exchange - Equity Derivatives Provision|exchange-traded options]]===
===Where there are no [[Options Exchange - Equity Derivatives Provision|exchange-traded options]]===
You do have to love {{icds}}}, don’t you: who else would take the time to consider what to do when you have selected {{eqderivprov|Options Exchange Adjustment}} for Shares that don’t have any [[Options Exchange - Equity Derivatives Provision|exchange-traded options]]. Look, folks, if there are no [[Options Exchange - Equity Derivatives Provision|exchange-traded options]] on the underlying shares, then don’t select Options Exchange Adjustment for crying out loud.
You do have to love {{icds}}, don’t you: for who else would take the time to consider what to do when you have selected {{eqderivprov|Options Exchange Adjustment}} for Shares that don’t have any [[Options Exchange - Equity Derivatives Provision|exchange-traded options]]. Look, folks, if there are no [[Options Exchange - Equity Derivatives Provision|exchange-traded options]] on the underlying shares, then ''don’t select {{eqderivprov|Options Exchange Adjustment}} as your {{eqderivprov|Method of Adjustment}} for crying out loud''.


A more patient mood, the [[JC]] supposes that options may have ceased trading on exchange since you started your Transaction, or may be suspended — and perhaps the sort of event that might concentrate or dilute the value of the shares might be just the thing that led to suspension or delisting. But even this is really a recommendation to plump for [[Calculation Agent Adjustment (Share Transactions) - Equity Derivatives Provision|Calculation Agent Adjustment]] under {{eqderivprov|11.2(b)}}. You would think. <br>
If he were in a more patient mood, the [[JC]] might suppose that options may unexpectedly cease trading on exchange after a {{eqderivprov|Transaction}} is executed, or may be temporarily suspended — and perhaps ’an event having a concentrative or dilutive effect on the value of the shares might be just the thing to cause a suspension or delisting. But even this is a recommendation to plump for [[Calculation Agent Adjustment (Share Transactions) - Equity Derivatives Provision|Calculation Agent Adjustment]] under {{eqderivprov|11.2(b)}}. You would think. I know, I know: ''but the {{eqderivprov|Calculation Agent}} might rip my face off!'' Not one who understands the [[commercial imperative]]. <br>

Revision as of 10:55, 24 January 2020

Where there are no exchange-traded options

You do have to love ISDA’s crack drafting squad™, don’t you: for who else would take the time to consider what to do when you have selected Options Exchange Adjustment for Shares that don’t have any exchange-traded options. Look, folks, if there are no exchange-traded options on the underlying shares, then don’t select Options Exchange Adjustment as your Method of Adjustment for crying out loud.

If he were in a more patient mood, the JC might suppose that options may unexpectedly cease trading on exchange after a Transaction is executed, or may be temporarily suspended — and perhaps ’an event having a concentrative or dilutive effect on the value of the shares might be just the thing to cause a suspension or delisting. But even this is a recommendation to plump for Calculation Agent Adjustment under 11.2(b). You would think. I know, I know: but the Calculation Agent might rip my face off! Not one who understands the commercial imperative.