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Template:M summ Equity Derivatives 5.10: Difference between revisions
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Template:M summ Equity Derivatives 5.10 (view source)
Revision as of 23:29, 1 March 2020
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Amwelladmin (talk | contribs) (Created page with "The {{eqderivprov|Equity Notional Reset}} is a feature for automatically restriking the Equity Notional Amount on a periodic basis to the prevailing value of the Equity Notion...") |
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The {{eqderivprov|Equity Notional Reset}} is a feature for automatically restriking the Equity Notional Amount on a periodic basis to | The {{eqderivprov|Equity Notional Reset}} is a feature for automatically restriking the {{Equity Notional Amount}} on a periodic basis to its prevailing value. It has the effect of converting posted [[collateral]] — which for financial institutions may suffer a punitive [[Regulatory capital|capital treatment]] — into realised profit and loss; and therefore no longer contingent liabilities to pay cash amounts. | ||
Am equity swap will reset automatically on each [[Cash Settlement Payment Date - Equity Derivatives Provision|Cash Settlement Payment Date]], (i.e., usually a {{eqderivprov|Settlement Cycle}} after each {{eqderivprov|Valuation Date}}). | |||
{{how Equity Notional Reset works}} | {{how Equity Notional Reset works}} | ||