Settlement Date - Equity Derivatives Provision
9.4 in a Nutshell™ (Equity Derivatives edition)
9.4. “Settlement Date” means:
- (a) for Option Transactions, the first Clearance System Business Day one Settlement Cycle after the Exercise Date; and
- (b) for Forward Transactions and Equity Swap Transactions, the specified date (or, failing that, one Settlement Cycle after the Valuation Date (adjusted for Clearance System Business Days).
- HOWEVER the Settlement Date will be delayed until any Settlement Disruption Event has lifted. If it doesn’t lift for 8 straight Clearance System Business Days then, if the Shares can be delivered some other way, the Settlement Date will be a settlement cycle after that eighth Clearance System Business Day. Otherwise, it will just be postponed until delivery can be effected.
- If only some Shares in a Basket are disrupted, the unaffected portion must be settled on schedule.