Template:M summ Equity Derivatives Transactions
“Underlier”?: There isn’t a generic catch-all term for the underlier of an Equity Derivatives Transaction. This is a pity, since “Index, Share or Basket as the case may be” isn’t the most elegant expression in the annals of legal literature. You might have used “Instrument” or even “Underlier” might do.
“Underlier” is a JC-spawned confection, and we do use it from time to time, when our patience with ISDA’s crack drafting squad™ and its leaden drafting becomes as shiny, thin and translucent as the seat of an old pair of suit trousers.
Equity Swap Transactions
A handy catch-all term to make your confirmation somehow legible, although to use it you must forego many, many juicy as the case may bes. Equity Swap Transactions break into two main categories:
- Index Swaps: Transactions relating to one Index (Index Swap Transactions) or several indices (Index Basket Swap Transactions);
- Share Swaps: Transactions relating to one Share (Share Swap Transactions) or several shares (Share Basket Swap Transactions).