Template:Nutshell Equity Derivatives 12.6(c): Difference between revisions
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{{eqderivprov|12.6(c)}} When determining the consequence of any {{eqderivprov|Nationalization}}, {{eqderivprov|Insolvency}} or {{eqderivprov|Delisting}}: <br> | {{eqderivprov|12.6(c)}} When determining the consequence of any {{eqderivprov|Nationalization}}, {{eqderivprov|Insolvency}} or {{eqderivprov|Delisting}}: <br> | ||
:(i) “''' | :(i)if “'''{{eqderivprov|Negotiated Close-out}}'''” applies, then unless the parties agree to terminate the {{eqderivprov|Transaction}} it will continue, but either party may choose to [[Cash Settlement - Equity Derivatives Provision|cash settle]] a {{eqderivprov|Physically-settled}} {{eqderivprov|Transaction}}, and if a {{eqderivprov|Scheduled Valuation Date}} is a {{eqderivprov|Disrupted Day}}, the {{eqderivprov|Calculation Agent}} will ignore Section {{eqderivprov|6.6}} ({{eqderivprov|Disrupted Day}}s) and use its [[good faith]] estimate to determine the {{eqderivprov|Settlement Price}} or {{eqderivprov|Final Price}} as of the {{eqderivprov|Valuation Time}} on that {{eqderivprov|Valuation Date}}; <br> | ||
:(ii) “'''[[Cancellation and Payment (Extraordinary Events) - Equity Derivatives Provision|Cancellation and Payment]]'''” means that the {{eqderivprov|Transaction}} will be cancelled as of the {{eqderivprov|Announcement Date}} and | :(ii) “'''[[Cancellation and Payment (Extraordinary Events) - Equity Derivatives Provision|Cancellation and Payment]]'''” means that the {{eqderivprov|Transaction}} will be cancelled as of the {{eqderivprov|Announcement Date}} and | ||
::(A) For {{eqderivprov|Option Transaction}}s, {{eqderivprov|Seller}} will pay {{eqderivprov|Buyer}} an amount calculated per Section {{eqderivprov|12.7(b)}}; | ::(A) For {{eqderivprov|Option Transaction}}s, {{eqderivprov|Seller}} will pay {{eqderivprov|Buyer}} an amount calculated per Section {{eqderivprov|12.7(b)}}; | ||
::(B) For {{eqderivprov|Forward Transaction}}s or {{eqderivprov|Equity Swap Transaction}}s, one party will pay the other an amount calculated per Section {{eqderivprov|12.7(c)}}; and <br> | ::(B) For {{eqderivprov|Forward Transaction}}s or {{eqderivprov|Equity Swap Transaction}}s, one party will pay the other an amount calculated per Section {{eqderivprov|12.7(c)}}; and <br> | ||
:(iii) “'''[[Partial Cancellation and Payment (Extraordinary Events) - Equity Derivatives Provision|Partial Cancellation and Payment]]'''” means that the portion of a {{eqderivprov|Share Basket Transaction}} representing {{eqderivprov|Affected Shares}} will be cancelled as of the {{eqderivprov|Announcement Date}}, the amount for the {{eqderivprov|Affected Shares}} will be calculated and paid per Section {{eqderivprov|12.7}} and the remainder of the {{eqderivprov|Share Basket Transaction}} will continue with the non-{{eqderivprov|Affected Shares}}, the {{eqderivprov|Calculation Agent}} adjusting any terms as necessary to preserve as far as possible the economic terms for the remaining {{eqderivprov|Share Basket}}. <br> | :(iii) “'''[[Partial Cancellation and Payment (Extraordinary Events) - Equity Derivatives Provision|Partial Cancellation and Payment]]'''” means that the portion of a {{eqderivprov|Share Basket Transaction}} representing {{eqderivprov|Affected Shares}} will be cancelled as of the {{eqderivprov|Announcement Date}}, the amount for the {{eqderivprov|Affected Shares}} will be calculated and paid per Section {{eqderivprov|12.7}} and the remainder of the {{eqderivprov|Share Basket Transaction}} will continue with the non-{{eqderivprov|Affected Shares}}, the {{eqderivprov|Calculation Agent}} adjusting any terms as necessary to preserve as far as possible the economic terms for the remaining {{eqderivprov|Share Basket}}. <br> | ||
Latest revision as of 18:18, 20 January 2022
12.6(c) When determining the consequence of any Nationalization, Insolvency or Delisting:
- (i)if “Negotiated Close-out” applies, then unless the parties agree to terminate the Transaction it will continue, but either party may choose to cash settle a Physically-settled Transaction, and if a Scheduled Valuation Date is a Disrupted Day, the Calculation Agent will ignore Section 6.6 (Disrupted Days) and use its good faith estimate to determine the Settlement Price or Final Price as of the Valuation Time on that Valuation Date;
- (ii) “Cancellation and Payment” means that the Transaction will be cancelled as of the Announcement Date and
- (A) For Option Transactions, Seller will pay Buyer an amount calculated per Section 12.7(b);
- (B) For Forward Transactions or Equity Swap Transactions, one party will pay the other an amount calculated per Section 12.7(c); and
- (iii) “Partial Cancellation and Payment” means that the portion of a Share Basket Transaction representing Affected Shares will be cancelled as of the Announcement Date, the amount for the Affected Shares will be calculated and paid per Section 12.7 and the remainder of the Share Basket Transaction will continue with the non-Affected Shares, the Calculation Agent adjusting any terms as necessary to preserve as far as possible the economic terms for the remaining Share Basket.