Trade Details - Equity Derivatives Provision

2002 ISDA Equity Derivatives Definitions A Jolly Contrarian owner’s manual™ Go premium Overview — Summary — Premium — See also — Wikitext Crosscheck: 2002 ISDA Equity Derivatives Definitions Wikitext Trade Details in a Nutshell™ The JC’s Nutshell™ summary of this term has moved uptown to the subscription-only ninja tier. For the cost of ½ a weekly 🍺 you can get it here. Sign up at Substack. You can even ask questions! Ask about it here. Original text Section 1.17. Trade Date. “Trade Date” means, in respect of a Transaction, the date specified in the related Confirmation. Section 1.18. Buyer. “Buyer” means the party specified as such in the related Confirmation. Section 1.19. Seller. “Seller” means the party specified as such in the related Confirmation. Section 1.20. Number of Shares. “Number of Shares” means: (a) in respect of a Share Option Transaction, the number of Shares obtained by multiplying the Number of Options by the Option Entitlement; (b) in respect of a Share Forward Transaction or a Share Swap Transaction, the number of Shares specified as such in the related Confirmation; and (c) in respect of a Share Basket Transaction for the Shares of each Issuer comprised in the Basket, the number of such Shares per Basket specified or otherwise determined as provided in the related Confirmation. Section 1.21. Number of Baskets. “Number of Baskets” means, in respect of an Index Basket Transaction or a Share Basket Transaction, the number of Baskets specified or determined as provided in the related Confirmation. Section 1.22. Multiplier. “Multiplier” means the percentage or amount specified as such in the related Confirmation. Section 1.23. Relevant Price. “Relevant Price” on any day means: (a) in respect of an Index, the level of such Index determined by the Calculation Agent as provided in the related Confirmation as of the Valuation Time on the Valuation Date or Averaging Date, as the case may be, or, if no means for determining the Relevant Price are so provided, the level of the Index as of the Valuation Time on the Valuation Date or Averaging Date, as the case may be; and (b) in respect of a Share, the price per Share determined by the Calculation Agent as provided in the related Confirmation as of the Valuation Time on the Valuation Date or Averaging Date, as the case may be, or, if no means for determining the Relevant Price are so provided: (i) in respect of any Share for which the Exchange is an auction or “open outcry” exchange that has a price as of the Valuation Time at which any trade can be submitted for execution, the Relevant Price shall be the price per Share as of the Valuation Time on the Valuation Date or Averaging Date, as the case may be, as reported in the official real-time price dissemination mechanism for such Exchange; and (ii) in respect of any Share for which the Exchange is a dealer exchange or dealer quotation system, the Relevant Price shall be the mid-point of the highest bid and lowest ask prices quoted as of the Valuation Time on the Valuation Date or Averaging Date, as the case may be, (or the last such prices quoted immediately before the Valuation Time) without regard to quotations that “lock” or “cross” the dealer exchange or dealer quotation system. Section 1.24. Equity Notional Amount. “Equity Notional Amount” means, in respect of an Equity Swap Transaction, the amount specified as such (or, if no such amount is specified, the amount specified as a “Notional Amount”) in the related Confirmation, adjusted, if applicable, as provided in Sections 5.10 and 10.4 and Article 11. Resources and Navigation Resources About the Equity Derivatives Definitions | (full wikitext) | (nutshell wikitext) | Equity v credit derivatives showdown Hot topics Synthetic Prime Brokerage Anatomy | The Triple Cocktail | Cancellation and Payment | Calculation Agent TOC | 1 General Definitions | 2 Option Transactions | 3 Exercise of Options | 4 Forward Transactions | 5 Equity Swap Transactions | 6 Valuation | 7 Settlement | 8 Cash Settlement | 9 Physical Settlement | 10 Dividends | 11 Adjustments and Modifications | 12 Extraordinary Events · 12.8 Cancellation Amount · 12.9 Additional Disruption Events · 12.9 List of ADEs · 12.9(b) Consequences of ADEs | 13 Miscellaneous Index: Click ᐅ to expand: Equity Derivatives Prime Brokerage

Comparisons

A JC-curated sub-division of the General Definitions section. We sub-group the Section 1 definitions into the following subgroups:

• Transactions — Sections 1.1 - 1.12
• Underliers — Sections 1.13 - 1.16
• Trade Details — Sections 1.17 - 1.24
• Exchanges, Clearing Systems and Currencies — Sections 1.25 - 1.37
• Trade Features — Sections 1.38 - 1.41
• Calculation Agent and Determination Agent - Section 1.40 and 12.8(f)
• Knock-ins and Knock-outs — Sections 1.42 - 1.51

Basics

Basic terms for each Transaction

You need to specify a Trade Date, Buyer, Seller and (in certain types of Transaction) a Number of Shares, Baskets, and if you’re being funky, a Multiplier, and here is where you do it. In an Option Transaction the Buyer is the person taking on the exposure to the Underlier; the Seller is the person laying it off. (Remember: a customer can be Buyer or Seller, or Floating Amount Payer or Equity Amount Payer, depending on whether the customer wants long or short exposure to the Underlier, but the dealer will always be the Hedging Party: the dealer will be, across its book, as close to “flat” as it can manage.

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See also

• Equity Notional Reset