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| {{eqderivsnap|6.3(a)}} | | {{eqdmanual|Market Disruption Event}} |
| ====Commentary====
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| Other relevant concepts:
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| *{{eqderivprov|Disrupted Day}}, being a day on which a {{eqderivprov|Market Disruption Event}} has occurred.
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| *{{eqderivprov|Consequences of Disrupted Days}};
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| *{{eqderivprov|Trading Disruption}} under {{eqderivprov|6.3(b)}};
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| *{{eqderivprov|Exchange}};
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| *{{eqderivprov|Related Exchange}};
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| *{{eqderivprov|Exchange Disruption}} under {{eqderivprov|6.3(c)}};
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| *{{eqderivprov|Early Closure}} under {{eqderivprov|6.3(d)}}.
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| =====What counts as Market Disruption?=====
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| A {{eqderivprov|Market Disruption Event}} is a {{eqderivprov|Trading Disruption}} or {{eqderivprov|Exchange Disruption}} at any time during the hour before any {{eqderivprov|Valuation Time}} or {{eqderivprov|Exercise Time}}, or {{eqderivprov|Early Closure}}.
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| *'''{{eqderivprov|Trading Disruption}}''': suspension/limitation in trading on an underlier (or futures on it) on any {{eqderivprov|Exchange}}/{{eqderivprov|Related Exchange}}*'''{{eqderivprov|Exchange Disruption}}''': any event that impairs the ability to value, settle transactions across any {{eqderivprov|Exchange}}/{{eqderivprov|Related Exchange}}
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| *'''{{eqderivprov|Early Closure}}''': the closure of any {{eqderivprov|Exchange}}/{{eqderivprov|Related Exchange}} prior to scheduled closing time unless announced at least one hour prior to the earlier of (i) the actual closing time for the regular trading session on that exchange and (ii) the submission deadline for orders on {{eqderivprov|Exchange}} for execution at the {{eqderivprov|Valuation Time}}
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| Additionally a day is “{{eqderivprov|Disrupted Day}}” if an {{eqderivprov|Exchange}}/{{eqderivprov|Related Exchange}} fails to open for trading during a regular trading session.
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| ====Indices====
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| In the case of an {{eqderivprov|Index}}, the disruption needs to affect 20% of more of the securities comprising the {{eqderivprov|Index}} for the {{eqderivprov|Index}} to be treated as disrupted. In that case valuation is moved for the whole index, not just the disrupted part.
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| ======Baskets======
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| In the case of {{eqderivprov|Baskets}} where some underliers are disrupted and some aren’t, only the affected underliers are subject to disruption provisions and the undisrupted aspects settle/value as scheduled.
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| ======{{eqderivprov|Exchange}}/{{eqderivprov|Related Exchange}}======
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| *Determining which are the “{{eqderivprov|Exchanges}}” and “{{eqderivprov|Related Exchanges}}” is ordinarily straightforward as they are specified in the confirmation.
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| *However, where “{{eqderivprov|All Exchanges}}” is specified as the “{{eqderivprov|Related Exchange}}”, then the {{eqderivprov|Market Disruption Event}} may be triggered if there is a disruption on any exchange where trading has a material effect (as determined by {{eqderivprov|Calculation Agent}}) on the overall market for futures or options relating to the underlier.
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| {{eqderivanatomy}}
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