Option Transaction - Equity Derivatives Provision

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Equity Derivatives Anatomy™

Section 1.2. Option Transaction. “Option Transaction” means a transaction that is (a) an over-the-counter (“OTC”) equity option transaction relating to a single index (an “Index Option Transaction”), (b) an OTC equity option transaction relating to a single share or other security (a “Share Option Transaction”), (c) an OTC equity option transaction relating to a basket of indices (an “Index Basket Option Transaction”) or (d) an OTC equity option transaction relating to a basket of shares or other securities (a “Share Basket Option Transaction”).

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EMIR application

Single-stock equity options and index options are covered by EMIR, but implementation was to be phased in so that no variation margin or initial margin is required to be exchanged until 3 years from the entry into force of the margin rules.

Which, by the reckoning of Amwell J, means March 1, 2020.