Dividend Payment Date - Equity Derivatives Provision: Difference between revisions

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{{eqderivanat|10.2}}
{{Manual|DEQ|2002|10.2|Section|10.2|medium}}
Only relevance of the {{eqderivprov|Cash Settlement Payment Date}} or {{eqderivprov|Settlement Date}} is that the former relates to [[Cash|money]] payments and therefore cash dividends, the latter to [[physical delivery]] of [[securities]], (i.e. scrip [[Dividend - Equity Derivatives Provision|dividend]]s), which are more fraught with disruptions.  
Only relevance of the {{eqderivprov|Cash Settlement Payment Date}} or {{eqderivprov|Settlement Date}} is that the former relates to [[Cash|money]] payments and therefore cash dividends, the latter to [[physical delivery]] of [[securities]], (i.e. scrip [[Dividend - Equity Derivatives Provision|dividend]]s), which are more fraught with disruptions.  



Revision as of 17:30, 25 February 2020

2002 ISDA Equity Derivatives Definitions
A Jolly Contrarian owner’s manual™

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Section 10.2 in a Nutshell

Use at your own risk, campers!
10.2. “Dividend Payment Date” means, for each Dividend Period, the date specified as such in the Confirmation (or the following Currency Business Day if it isn’t one). If no Dividend Payment Date is specified it will be the Cash Settlement Payment Date or Settlement Date relating to the end of the relevant Dividend Period.

Full text of Section 10.2

Section 10.2. Dividend Payment Date. “Dividend Payment Date” means, in respect of a Dividend Period, each date specified or otherwise determined as provided in the related Confirmation or, if such date is not a Currency Business Day, the next following Currency Business Day. If no such date is specified in the related Confirmation, the Dividend Payment Date shall be the Cash Settlement Payment Date or Settlement Date, as the case may be, relating to the end of the relevant Dividend Period.


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References

Only relevance of the Cash Settlement Payment Date or Settlement Date is that the former relates to money payments and therefore cash dividends, the latter to physical delivery of securities, (i.e. scrip dividends), which are more fraught with disruptions.

So your cash payments will usually get paid on the intended Currency Business Day; scrip dividends might not get to you for a few days if the market is a bit salty.

See also