Template:M comp disc EUA Annex (d)(i)

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Settlement

The same broad concept is dealt with as follows:

Situation normal... : Techy drafting slip from ISDA’s crack drafting squad™: “Number of Allowances to be Delivered” isn’t a thing: there is “Number of Allowances”, which is the notional size of the Transaction, and then there is Allowances to be Delivered which references the particular number of Allowances to be settled under an Option and thus already builds in a number.

Delivery

What counts as a delivery, when it is deemed completed, to which accounts and so on, and some curious over-description redolent of a bad used car salesman who really should have stopped talking, but found himself filling the uncomfortable silence with words which by their pregnancy compel him to complete his sentence, which in turn, he realises to his horror, compels him to confess mechanical flaws in the lemon he was really hoping you would drive off the lot with before discovering.

Netting

Template:M comp disc EUA Annex (d)(i)(3)

Settlement Disruption Event

In a Nutshell what is going on here is:

But note: no extra Cost of Carry Amount factored in here, as there is for a Suspension Event. Why? Cherchez moi. If you find out, let me know.

Suspension Event

You will notice similarities between the way a Suspension Event and a Settlement Disruption Event. One can, and we do, bellyache about the way ISDA’s crack drafting squad™ goes about the task of rendering its fantastical ideas in the language of Shakespeare and Milton, but you can’t really fault them for consistency.

Here, in counterpoint to a normal Settlement Disruption Event if there is delayed performance the payment obligation is adjusted to include a Cost of Carry Amount.

  1. Which there should be... but who knows, maybe a man from mars will come down and start eating up bars in the mean time.