83,428
edits
Template:M summ Equity Derivatives Partial Cancellation and Payment: Difference between revisions
Template:M summ Equity Derivatives Partial Cancellation and Payment (view source)
Revision as of 14:35, 13 October 2023
, 13 October 2023no edit summary
Amwelladmin (talk | contribs) (Created page with "So, what is going on here then? Well, in a certain type of Transaction — specifically, a {{eqderivprov|Share Basket Transaction}} — an {{eqderivprov|Extraordinary Event}} may affect one but not the other {{eqderivprov|Shares}} in the Basket: {{eqderivprov|Tender Offer}}, {{eqderivprov|Merger Event}}, {{eqderivprov|Nationalization}}, {{eqderivprov|Insolvency}} or a {{eqderivprov|Delisting}}. In this case there is the opportunity to partially cancel the {{eqderivprov...") |
Amwelladmin (talk | contribs) No edit summary |
||
| Line 1: | Line 1: | ||
So, what is going on here then? Well, in a certain type of Transaction — specifically, a {{eqderivprov|Share Basket Transaction}} — an {{eqderivprov|Extraordinary Event}} may affect one but not the other {{eqderivprov|Shares}} in the Basket: {{eqderivprov|Tender Offer}}, {{eqderivprov|Merger Event}}, {{eqderivprov|Nationalization}}, {{eqderivprov|Insolvency}} or a {{eqderivprov|Delisting}}. | [[Partial Cancellation and Payment - Equity Derivatives Provision|So]], what is going on here then? Well, in a certain type of Transaction — specifically, a {{eqderivprov|Share Basket Transaction}} — an {{eqderivprov|Extraordinary Event}} may affect one but not the other {{eqderivprov|Shares}} in the Basket: {{eqderivprov|Tender Offer}}, {{eqderivprov|Merger Event}}, {{eqderivprov|Nationalization}}, {{eqderivprov|Insolvency}} or a {{eqderivprov|Delisting}}. | ||
In this case there is the opportunity to partially cancel the {{eqderivprov|Transaction}}, pay that bit of it out, and the remainder of the {{eqderivprov|Transaction}} carries on, at the reduced notional. {{eqderivprov|Partial Cancellation and Payment}} isn’t relevant for a single {{eqderivprov|Share Transaction}} — it’s all or nothing, obviously enough — nor an Index Transaction, because the Index will likely be adjusted and recalculated (there may be a substitution or some such thing) but in any case the notional of the {{eqderivprov|Transaction}} does not reduce in this case: rather the deterioration in value is reflected in the level of the {{eqderivprov|Index}}. | In this case there is the opportunity to partially cancel the {{eqderivprov|Transaction}}, pay that bit of it out, and the remainder of the {{eqderivprov|Transaction}} carries on, at the reduced notional. {{eqderivprov|Partial Cancellation and Payment}} isn’t relevant for a single {{eqderivprov|Share Transaction}} — it’s all or nothing, obviously enough — nor an Index Transaction, because the Index will likely be adjusted and recalculated (there may be a substitution or some such thing) but in any case the notional of the {{eqderivprov|Transaction}} does not reduce in this case: rather the deterioration in value is reflected in the level of the {{eqderivprov|Index}}. | ||