Extraordinary Dividend - Equity Derivatives Provision

Template:Eqderivsnap You would be forgiven for thinking this definition a little circular, especially if you haven't specified what an Extraordinary Dividend will be in the Confirmation. It boils down, as best as I can fathom, to “an Extraordinary Dividend is whatever the Calculation Agent jolly well says it is.”

Which, in its way, is fine, especially if you happen to be acting for the Calculation Agent, but if you are the Calculation Agent and the question before you is “is this really weird thing that’s just happened to the voting stock of some obscure trucking company in Panama an Extraordinary Dividend or not?” you might feel anchored a little high up the beach as the tide goes out.

Look, I don’t make the rules, folks.