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Template:M summ Equity Derivatives 10: Difference between revisions
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::(a) where the {{eqderivprov|Share}} was trading “[[ex-dividend]]” as of the {{isdadefsprov|Effective Date}}, the {{eqderivprov|Paid Amount}} will be zero; and | ::(a) where the {{eqderivprov|Share}} was trading “[[ex-dividend]]” as of the {{isdadefsprov|Effective Date}}, the {{eqderivprov|Paid Amount}} will be zero; and | ||
::(b) where the {{isdaprov|Transaction}} terminates ''after'' the {{eqderivprov|Share}} commenced trading “[[ex-dividend]]” but ''before'' the scheduled {{eqderivprov|Dividend Payment Date}}, the {{eqderivprov|Equity Amount Payer}} will pay any {{eqderivprov|Paid Amount}} one [[settlement cycle]] following payment of the corresponding dividend by the {{eqderivprov|Issuer}} to holders of record of the {{eqderivprov|Share}}. | ::(b) where the {{isdaprov|Transaction}} terminates ''after'' the {{eqderivprov|Share}} commenced trading “[[ex-dividend]]” but ''before'' the scheduled {{eqderivprov|Dividend Payment Date}}, the {{eqderivprov|Equity Amount Payer}} will pay any {{eqderivprov|Paid Amount}} one [[settlement cycle]] following payment of the corresponding dividend by the {{eqderivprov|Issuer}} to holders of record of the {{eqderivprov|Share}}. | ||
===Section {{eqderivprov|10.2}}=== | |||
Just part of the monster truck motorway pile-up that was {{icds}}s’ attempt to provide for manufactured dividends on equity derivatives. Total disaster. See {{eqderivprov|Dividend Amount}} for the full enormity of the situation. | |||
The only relevance of the {{eqderivprov|Cash Settlement Payment Date}} or {{eqderivprov|Settlement Date}} is that the former relates to [[Cash|money]] payments and therefore cash dividends, the latter to [[physical delivery]] of [[securities]], (i.e. scrip [[Dividend - Equity Derivatives Provision|dividend]]s), which are more fraught with disruptions. | |||
So your cash payments will usually get paid on the intended {{eqderivprov|Currency Business Day}}; [[scrip|scrip dividend]]s might not get to you for a few days if the market is a bit salty. | |||