Template:Extraordinary events capsule

Break these “Extraordinary Events” into four categories:

• Corporate action thingies: (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 external events relating to underlying Issuers: Nationalizations, Insolvency, Delisting of underlying Issuers;
• Matters impeding the parties in performing and hedging the Transaction: These oftebn do have some crossover with the events above, but the emphasis here is (for the most part) on their direct impact on the parties’ respective abilities to perform and risk manage the Transaction. So, the Triple Cocktail of Chain 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, but which people tend to disapply — possibly for this exact reason, but possibly because they are largely covered by the Triple Cocktail anyway — namely Failure to Deliver and, even more weirdly, Insolvency Filing.