Equity Notional Amount - Equity Derivatives Provision

Commentary

It is different to the Initial Price in that Initial Price is expressed as a price per Share, whereas the Equity Notional Amount tends to be Initial Price * Number of Shares.

• 5.10 is the "Equity Notional Reset". The Equity Notional Reset is a feature for automatically restriking the Equity Notional Amount to the prevailing value of the Equity Notional Amount. It has the effect of converting posted collateral - which for financial institutions may suffer a punitive capital treatment - into absolutely paid amounts.
• 10.1 is Re-investment of Dividends - wherein declared and paid dividends are not manufactured out but rolled up and added to the Equity Notional Amount.
• 11 is Adjustments and Modifications.