Template:2002 ISDA Equity Derivatives Definitions 11.1(b): Difference between revisions

Template:2002 ISDA Equity Derivatives Definitions 11.1(b) (view source)

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	{{eqderivprov\|11.1(b)}} If (i) on or prior to any {{eqderivprov\|Valuation Date}} in respect of an {{eqderivprov\|Index Transaction}} or {{eqderivprov\|Index Basket Transaction}}, a relevant {{eqderivprov\|Index Sponsor}} announces that it will make a material change in the formula for or the method of calculating that {{eqderivprov\|Index}} or in any other way materially modifies that {{eqderivprov\|Index}} (other than a modification prescribed in that formula or method to maintain that {{eqderivprov\|Index}} in the event of changes in constituent stock and capitalization and other routine events) (an "'''{{eqderivprov\|Index Modification}}'''") or permanently cancels the {{eqderivprov\|Index}} and no {{eqderivprov\|Successor Index}} exists (an "'''{{eqderivprov\|Index Cancellation}}'''") or (ii) on any {{eqderivprov\|Valuation Date}} in respect of an {{eqderivprov\|Index Transaction}} or {{eqderivprov\|Index Basket Transaction}}, the {{eqderivprov\|Index Sponsor}} fails to calculate and announce a relevant {{eqderivprov\|Index}} (an "'''{{eqderivprov\|Index Disruption}}'''" and together with an {{eqderivprov\|Index Modification}} and an {{eqderivprov\|Index Cancellation}}, each an "'''{{eqderivprov\|Index Adjustment Event}}'''"), then: <br>		{{eqderivprov\|11.1(b)}} If (i) on or prior to any {{eqderivprov\|Valuation Date}} in respect of an {{eqderivprov\|Index Transaction}} or {{eqderivprov\|Index Basket Transaction}}, a relevant {{eqderivprov\|Index Sponsor}} announces that it will make a material change in the formula for or the method of calculating that {{eqderivprov\|Index}} or in any other way materially modifies that {{eqderivprov\|Index}} (other than a modification prescribed in that formula or method to maintain that {{eqderivprov\|Index}} in the event of changes in constituent stock and capitalization and other routine events) (an "'''{{eqderivprov\|Index Modification}}'''") or permanently cancels the {{eqderivprov\|Index}} and no {{eqderivprov\|Successor Index}} exists (an "'''{{eqderivprov\|Index Cancellation}}'''") or (ii) on any {{eqderivprov\|Valuation Date}} in respect of an {{eqderivprov\|Index Transaction}} or {{eqderivprov\|Index Basket Transaction}}, the {{eqderivprov\|Index Sponsor}} fails to calculate and announce a relevant {{eqderivprov\|Index}} (an "'''{{eqderivprov\|Index Disruption}}'''" and together with an {{eqderivprov\|Index Modification}} and an {{eqderivprov\|Index Cancellation}}, each an "'''{{eqderivprov\|Index Adjustment Event}}'''"), then: <br>
			:(B) if "'''{{eqderivprov\|Negotiated Close-out}}'''" is specified in the related {{eqderivprov\|Confirmation}} as the consequence of any such {{eqderivprov\|Index Adjustment Event}}, then the parties may, but are not obliged to, terminate the {{eqderivprov\|Transaction}} on mutually acceptable terms and if they do not agree to terminate the {{eqderivprov\|Transaction}}, then it continues on the terms and subject to the conditions, formulas and calculation methods in effect as of any relevant time at which calculations may be made; or <br>