Equity Notional Amount - Equity Derivatives Provision
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Commentary
- 5.10 is the "Equity Notional Reset". The Equity Notional Reset is a feature for automatically restriking the Equity Notional Amount to the prevailing value of the Equity Notional Amount. It has the effect of converting posted collateral - which for financial institutions may suffer a punitive capital treatment - into absolutely paid amounts.
- 10.1 is Re-investment of Dividends - wherein declared and paid dividends are not manufactured out but rolled up and added to the Equity Notional Amount.
- 11 is Adjustments and Modifications.