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| {{eqderivanat|12.8(a)}} | | {{manual|DEQ|2002|12.8(a)|Section||medium}} |
| {{eqderivprov|Cancellation Amount}} is a beast of a definition. But when you boil it down, it’s pretty straightforward. It applies when terminating a {{eqderivprov|Transaction}} following an {{eqderivprov|Extraordinary Event}} or an {{eqderivprov|Additional Disruption Event}}.
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| Importantly, by dint of Section {{eqderivprov|12.8(e)}}, the {{eqderivprov|Determining Party}} may pass through hedge breakage costs and losses.
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| If it’s a beast under 2002, it’s worse under the (ill fated) [[2011 ISDA Equity Derivatives Definitions]]. Quoth [[Clifford Chance]]:
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| :“This provision has been amended heavily and now runs to over 10 pages. It sets out different optional methods of calculating the transaction value, rather than following a purely replacement value approach (as under the 2002 Definitions) which was considered not to be appropriate in all cases. Greater detail is also provided as to how and when the {{eqderivprov|Cancellation Amount}} is to be determined, what data is to be taken into account and how losses/gains resulting from hedge close-outs are allocated.”
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| {{Nuts|Equity Derivatives|Cancellation Amount}}
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| {{2002 ISDA Equity Derivatives Definitions Section 12.8 TOC}}
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| {{box|
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| {{2002 ISDA Equity Derivatives Definitions 12.8}}
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| {{2002 ISDA Equity Derivatives Definitions 12.8(a)}}
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| {{2002 ISDA Equity Derivatives Definitions 12.8(b)}}
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| {{2002 ISDA Equity Derivatives Definitions 12.8(c)}}
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| {{2002 ISDA Equity Derivatives Definitions 12.8(d)}}
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| {{2002 ISDA Equity Derivatives Definitions 12.8(e)}}
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| {{2002 ISDA Equity Derivatives Definitions 12.8(f)}}
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| {{2002 ISDA Equity Derivatives Definitions 12.8(g)}}}}
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