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Cancellation Amount - Equity Derivatives Provision: Difference between revisions
Cancellation Amount - Equity Derivatives Provision (view source)
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{{fullanat|eqderiv|12.8(a)|}} | {{fullanat|eqderiv|12.8(a)|}} | ||
{{eqderivprov|Cancellation Amount}} is a beast of a definition. But when you boil it down, it's pretty straightforward. It applies when terminating a transaction following an {{eqderivprov|Extraordinary Event}} or an {{eqderivprov|Additional Disruption Event}}. | {{eqderivprov|Cancellation Amount}} is a beast of a definition. But when you boil it down, it's pretty straightforward. It applies when terminating a transaction following an {{eqderivprov|Extraordinary Event}} or an {{eqderivprov|Additional Disruption Event}}. | ||
Importantly, by dint of Section {{eqderivprov|12.8(e)}}, the {{eqderivprov|Determining Party}} may pass through hedge breakage costs and losses. | |||
If it's a beast under 2002, it's worse under the (ill fated) [[2011 ISDA Equity Derivatives Definitions]]. Quoth [[Clifford Chance]]: | If it's a beast under 2002, it's worse under the (ill fated) [[2011 ISDA Equity Derivatives Definitions]]. Quoth [[Clifford Chance]]: | ||