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 often do have some crossover with market events above, but the emphasis here is the direct impact on the parties’ abilities to perform and hedge the Transaction. So, the Triple Cocktail of Change in Law, Hedging Disruption and Increased Cost of Hedging; the specific issues relating to short-selling (Loss of Stock Borrow and Increased Cost of Stock Borrow) and then 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 on account of illiquidity and, even more randomly, Insolvency Filing<ref>especiaklly since there is already an Insolvency event covering most of this).