Product Type Settlement Terms - Digital Assets Provision

2023 ISDA Digital Asset Transactions Definitions
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2023 ISDA Digital Asset Transactions Definitions: 1 • 2 • 3 • 4 • 5 • 6 • 7 • 8 • Settlement Price Source Matrix Wikitext: Full • Nutshell Crypto-resources from around the JC: Crypto asset • Blockchain • Distributed ledger • Non-fungible token • CryptöagleIndex: Click ᐅ to expand: Digital Assets Cryptobabble

Section 2.2 in a Nutshell™

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Full text of Section 2.2

2.2 Product Type Settlement Terms:

2.2.1 Settlement Terms for Product Types: The settlement terms applicable to a Transaction will be as set out below for the Product Type of the Transaction:


Product Type	Settlement Terms Applicable
NDF	NDF Settlement Terms
NDO	NDO Premium Payment and NDO Settlement Terms

2.2.2 NDF Settlement Terms

(i) IF the Settlement Price at the Valuation Time on the Valuation Date is greater than the Forward Price,

(ii) THEN the Seller will pay the Forward Cash Settlement Amount to the Buyer on the Settlement Date,

(iii) OR ELSE IF the Settlement Price at the Valuation Time on the Valuation Date is less than the Forward Price,

(iv) THEN the Buyer will pay the absolute value of the Forward Cash Settlement Amount to the Seller on the Settlement Date.

2.2.3 NDO Premium Payment

(i) The Buyer will pay the Premium to the Seller in the Settlement Currency on the Premium Payment Date.

2.2.4 NDO Settlement Terms

(i) IF all the conditions below are satisfied:

(a) either:

(I) the Buyer has given an NDO Exercise Notice to the Seller or, if applicable, the Seller's Designated Agent during an Exercise Window to exercise the NDO; or

(II) “Automatic Exercise” is specified as Applicable in respect of the Transaction and the Automatic Exercise Condition has been satisfied,

(ii) THEN the Seller will pay the Option Cash Settlement Amount to the Buyer on the Settlement Date.

2.2.5 Corrections of the Settlement Price

(i) IF all of the conditions below are satisfied:

(a) a correction is published by the Settlement Price Source Provider in respect of the Settlement Price for the Valuation Time on the Valuation Date; and

(b) either party has notified the other party and, if the Calculation Agent is not a party to the Transaction, the Calculation Agent, of the correction prior to the Settlement Date,

(ii) THEN the Calculation Agent, acting in good faith and using commercially reasonable procedures, will determine the amount that is payable as a result of that correction and, to the extent necessary, will adjust the terms of the Transaction to account for such correction.

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Related agreements and comparisons

Related Agreements Click here* for the text of Section [[- Equity Derivatives Provision\|]] in the 2002 ISDA Equity Derivatives Definitions* which is, in its way, somewhat analogous. But not necessarily that analogous.