Template:Extraordinary events capsule

Break these “Extraordinary Events” into four categories:

• Corporate actions on Issuers: (generally) benign but unscheduled matters of corporate structure concerning the management of specific underlying Shares, that change the economic proposition represented by those Shares, and not the equity derivative contract. So: Merger Events and Tender Offers;
• Index adjustments: Equivalent measures that relate to an underlying Index - collectively Index Adjustment Events. So:

• Index Modification: Changes in the calculation methodology for the Index
• Index Cancellation: Where Indexes are discontinued with replacement;
• Index Disruption: disruption in the calculation and publication of Index values;

• Negative events affecting Issuers: Nationalizations, Insolvency, Delisting of underlying Issuers;
• Transaction disruption: These “Additional Disruption Events” often crossover with market- and Issuer-dependent events above, but the emphasis here is the direct impact on the parties’ abilities to perform and hedge the derivative Transaction itself. So:

• The Triple Cocktail: The Triple Cocktail of Change in Law, Hedging Disruption and Increased Cost of Hedging;
• Stock borrow events: Specific issues relating to short-selling (Loss of Stock Borrow and Increased Cost of Stock Borrow); and

• Random ones that aren’t needed or used: Two random ones that don’t brilliantly fit with this theory, and which people tend to disapply — possibly for that exact reason, but they are fairly well covered by the Triple Cocktail anyway — Failure to Deliver under the Transaction on account of illiquidity and, even more randomly, Insolvency Filing<ref>especially since there is already an “Insolvency” event covering most of this).