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Template:Emissions Settlement summ: Difference between revisions
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Template:Emissions Settlement summ (view source)
Revision as of 13:26, 10 November 2023
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{{euaprov|Settlement}} (ISDA), {{efetaprov|Scheduling}} (EFET), {{ietaprov|Primary Obligation}} (IETA) — the core provision that sets out who pays what, where and to whom, for {{{{{1}}}|Option Transaction}}s and {{{{{1}}}|Forward Transaction}}s. | {{euaprov|Settlement}} (ISDA), {{efetaprov|Scheduling}} (EFET), {{ietaprov|Primary Obligation}} (IETA) — the core provision that sets out who pays what, where and to whom, for {{{{{1}}}|Option Transaction}}s and {{{{{1}}}|Forward Transaction}}s. | ||
The JC is no great fan of definitions, but God only knows, in the ISDA one would have come in handy here. You know, a “'''{{euaprov|Purchase Amount}}'''” for {{euaprov|Forward Transaction}}s, or a “'''{{euaprov|Strike Amount}}'''” for {{euaprov|Option Transaction}}s (or a “'''{{euaprov| | The JC is no great fan of definitions, but God only knows, in the ISDA one would have come in handy here. You know, a “'''{{euaprov|Purchase Amount}}'''” for {{euaprov|Forward Transaction}}s, or a “'''{{euaprov|Strike Amount}}'''” for {{euaprov|Option Transaction}}s (or a “'''{{euaprov|Payment Amount}}'''”, for both) might have been nice, given they are the key concepts in {{euaprov|Option Transaction}}s ''and'' {{euaprov|Forward Transaction}}s. | ||
As for {{euaprov|Allowances to be Delivered}} — okay, there is at least a term for the physical half of that, but it’s rubbish. What about “'''{{euaprov|Delivery Amount}}'''”? | As for “{{euaprov|Allowances to be Delivered}}” — okay, there is at least a term for the physical half of that, but it’s rubbish. What about “'''{{euaprov|Delivery Amount}}'''”? | ||
There is a distinction between the “{{euaprov|Number of Allowances}}” — effectively the notional size of the whole trade — and the “{{euaprov|Allowances to be Delivered}}” — the portion of it that is settling on any given day. The difference is that American options can settle in part, on any day in the term of the Transaction. Forwards typically don’t — they all settle on a pre-agreed settlement date | |||
(To be fair to the Emissions ninjas at IETA, they ''do'' have this concept: “'''{{ietaprov|Contract Amount}}'''”). | (To be fair to the Emissions ninjas at IETA, they ''do'' have this concept: “'''{{ietaprov|Contract Amount}}'''”). | ||