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Determining Party - Equity Derivatives Provision: Difference between revisions
Determining Party - Equity Derivatives Provision (view source)
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{{fullanat|eqderiv|12.8(f)|}} | {{fullanat|eqderiv|12.8(f)|}} | ||
{{2002 ISDA Equity Derivatives Definitions Section 12.8 TOC}} | |||
===And the difference between {{eqderivprov|Calculation Agent}} and {{eqderivprov|Determining Party}} is?=== | ===And the difference between {{eqderivprov|Calculation Agent}} and {{eqderivprov|Determining Party}} is?=== | ||
In drafting the equity derivative definitions {{tag|ISDA}} was agnostic as to who would be {{eqderivprov|Calculation Agent}}, but recognised that while some calculations could be performed by whoever was Calculation Agent, {{eqderivprov|Cancellation Amount}} calculations were inextricably related to unwinding the hedge – usually in the case of a disruption – and this would naturally best be calculated by the {{eqderivprov|Hedging Party}} – being the person unwinding the hedge. If that’s not the Calculation Agent, it needed to be treated differently. | In drafting the equity derivative definitions {{tag|ISDA}} was agnostic as to who would be {{eqderivprov|Calculation Agent}}, but recognised that while some calculations could be performed by whoever was Calculation Agent, {{eqderivprov|Cancellation Amount}} calculations were inextricably related to unwinding the hedge – usually in the case of a disruption – and this would naturally best be calculated by the {{eqderivprov|Hedging Party}} – being the person unwinding the hedge. If that’s not the Calculation Agent, it needed to be treated differently. | ||