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Template:M comp disc Equity Derivatives 6.3(a): Difference between revisions
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Template:M comp disc Equity Derivatives 6.3(a) (view source)
Revision as of 07:59, 17 May 2022
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Amwelladmin (talk | contribs) (Created page with "{{eqderivprov|Market Disruption Event}}s fall in the Valuation chapter of the {{eqdefs}}, not the Extraodinary Events. So that should tell you these are disruptions that get i...") |
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{{2002 ISDA Equity Derivatives Definitions Section 6 TOC}} | |||
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{{eqderivprov|Market Disruption Event}}s fall in the Valuation chapter of the {{eqdefs}}, not the Extraodinary Events. So that should tell you these are disruptions that get in the {{eqderivprov|Calculation Agent}}’s hair and make ''valuing'' the trade harder — annoying, sure, but not so gnarly that the {{eqderivprov|Hedging Party}} can’t comfortably hedge its exposure, so there’s no need to reprice the {{eqderivprov|Transaction}}, or call on time on it altogether. To be sure, that time might come — especially if the [[Market Disruption Event - Equity Derivatives Provision|Market Disruption]] is prolonged — but as long as you are in the {{eqderivprov|Valuation}} chapter, the presumption is that it ''hasn''’t come just yet. | {{eqderivprov|Market Disruption Event}}s fall in the Valuation chapter of the {{eqdefs}}, not the Extraodinary Events. So that should tell you these are disruptions that get in the {{eqderivprov|Calculation Agent}}’s hair and make ''valuing'' the trade harder — annoying, sure, but not so gnarly that the {{eqderivprov|Hedging Party}} can’t comfortably hedge its exposure, so there’s no need to reprice the {{eqderivprov|Transaction}}, or call on time on it altogether. To be sure, that time might come — especially if the [[Market Disruption Event - Equity Derivatives Provision|Market Disruption]] is prolonged — but as long as you are in the {{eqderivprov|Valuation}} chapter, the presumption is that it ''hasn''’t come just yet. | ||
If it does, make directly for the {{eqderivprov|Extraordinary Events}} section (Section {{eqderivprov|12}}), and especially the {{eqderivprov|Triple Cocktail}}. | If it does, make directly for the {{eqderivprov|Extraordinary Events}} section (Section {{eqderivprov|12}}), and especially the {{eqderivprov|Triple Cocktail}}. | ||