Template:2002 ISDA Equity Derivatives Definitions 11.2(b): Difference between revisions
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:(b) If “'''{{eqderivprov|Options Exchange Adjustment}}'''” is specified as the Method of Adjustment in the related {{eqderivprov|Confirmation}} of a {{eqderivprov|Share Transaction}} or {{eqderivprov|Share Basket Transaction}}, then following each adjustment to the exercise, settlement, payment or other terms of options on any relevant {{eqderivprov|Shares}} traded on any {{eqderivprov|Options Exchange}}, the {{eqderivprov|Calculation Agent}} will make the corresponding adjustments, if any, to any [[one or more]] of: <br> | :{{eqderivprov|11.2(b)}} If “'''{{eqderivprov|Options Exchange Adjustment}}'''” is specified as the Method of Adjustment in the related {{eqderivprov|Confirmation}} of a {{eqderivprov|Share Transaction}} or {{eqderivprov|Share Basket Transaction}}, then following each adjustment to the exercise, settlement, payment or other terms of options on any relevant {{eqderivprov|Shares}} traded on any {{eqderivprov|Options Exchange}}, the {{eqderivprov|Calculation Agent}} will make the corresponding adjustments, if any, to any [[one or more]] of: <br> | ||
::(i) in respect of a {{eqderivprov|Share Option Transaction}} or a {{eqderivprov|Share Basket Option Transaction}}, the {{eqderivprov|Strike Price}}, the {{eqderivprov|Number of Options}}, the {{eqderivprov|Option Entitlement}}, the {{eqderivprov|Knock-in Price}}, the {{eqderivprov|Knock-out|Price}}, and the relevant {{eqderivprov|Number of Shares}}; <br> | ::(i) in respect of a {{eqderivprov|Share Option Transaction}} or a {{eqderivprov|Share Basket Option Transaction}}, the {{eqderivprov|Strike Price}}, the {{eqderivprov|Number of Options}}, the {{eqderivprov|Option Entitlement}}, the {{eqderivprov|Knock-in Price}}, the {{eqderivprov|Knock-out|Price}}, and the relevant {{eqderivprov|Number of Shares}}; <br> | ||
::(ii) in respect of a {{eqderivprov|Share Forward Transaction}} or a {{eqderivprov|Share Basket Forward Transaction}}, the {{eqderivprov|Forward Price}}, the {{eqderivprov|Forward Floor Price}}, the {{eqderivprov|Forward Cap Price}}, the {{eqderivprov|Knock-in Price}}, the {{eqderivprov|Knock-out Price}}, and the relevant {{eqderivprov|Number of Shares}}; <br> | ::(ii) in respect of a {{eqderivprov|Share Forward Transaction}} or a {{eqderivprov|Share Basket Forward Transaction}}, the {{eqderivprov|Forward Price}}, the {{eqderivprov|Forward Floor Price}}, the {{eqderivprov|Forward Cap Price}}, the {{eqderivprov|Knock-in Price}}, the {{eqderivprov|Knock-out Price}}, and the relevant {{eqderivprov|Number of Shares}}; <br> | ||
::(iii) in respect of a {{eqderivprov|Share Swap Transaction}} or a {{eqderivprov|Share Basket Swap Transaction}}, the {{eqderivprov|Initial Price}}, the {{eqderivprov|Equity Notional Amount}}, the {{eqderivprov|Knock-in Price}}, the {{eqderivprov|Knock-out Price}}, and the relevant {{eqderivprov|Number of Shares}}; <br> | ::(iii) in respect of a {{eqderivprov|Share Swap Transaction}} or a {{eqderivprov|Share Basket Swap Transaction}}, the {{eqderivprov|Initial Price}}, the {{eqderivprov|Equity Notional Amount}}, the {{eqderivprov|Knock-in Price}}, the {{eqderivprov|Knock-out Price}}, and the relevant {{eqderivprov|Number of Shares}}; <br> | ||
:and, in any case, any other variable relevant to the exercise, settlement, payment or other terms of that {{eqderivprov|Transaction}}, as determined by the {{eqderivprov|Calculation Agent}}, which adjustment will be effective as of the date determined by the {{eqderivprov|Calculation Agent}} to be the effective date of the corresponding adjustment made by the {{eqderivprov|Options Exchange}}. If options on the relevant {{eqderivprov|Shares}} are not traded on the {{eqderivprov|Options Exchange}}, the {{eqderivprov|Calculation Agent}} will make such adjustment, if any, to any [[one or more]] of the relevant variables referred to above or any other variable relevant to the exercise, settlement, payment or other terms of the {{eqderivprov|Transaction}} as the {{eqderivprov|Calculation Agent}} determines appropriate, with reference to the rules of and precedents (if any) set by the {{eqderivprov|Options Exchange}}, to account for the diluting or concentrative effect of any event that, in the determination of the {{eqderivprov|Calculation Agent}}, would have given rise to an adjustment by the {{eqderivprov|Options Exchange}} if such options were so traded. <br> | :and, in any case, any other variable relevant to the exercise, settlement, payment or other terms of that {{eqderivprov|Transaction}}, as determined by the {{eqderivprov|Calculation Agent}}, which adjustment will be effective as of the date determined by the {{eqderivprov|Calculation Agent}} to be the effective date of the corresponding adjustment made by the {{eqderivprov|Options Exchange}}. If options on the relevant {{eqderivprov|Shares}} are not traded on the {{eqderivprov|Options Exchange}}, the {{eqderivprov|Calculation Agent}} will make such adjustment, if any, to any [[one or more]] of the relevant variables referred to above or any other variable relevant to the exercise, settlement, payment or other terms of the {{eqderivprov|Transaction}} as the {{eqderivprov|Calculation Agent}} determines appropriate, with reference to the rules of and precedents (if any) set by the {{eqderivprov|Options Exchange}}, to account for the diluting or concentrative effect of any event that, in the determination of the {{eqderivprov|Calculation Agent}}, would have given rise to an adjustment by the {{eqderivprov|Options Exchange}} if such options were so traded. <br> | ||
Latest revision as of 09:13, 18 May 2018
- 11.2(b) If “Options Exchange Adjustment” is specified as the Method of Adjustment in the related Confirmation of a Share Transaction or Share Basket Transaction, then following each adjustment to the exercise, settlement, payment or other terms of options on any relevant Shares traded on any Options Exchange, the Calculation Agent will make the corresponding adjustments, if any, to any one or more of:
- (i) in respect of a Share Option Transaction or a Share Basket Option Transaction, the Strike Price, the Number of Options, the Option Entitlement, the Knock-in Price, the Knock-out, and the relevant Number of Shares;
- (ii) in respect of a Share Forward Transaction or a Share Basket Forward Transaction, the Forward Price, the Forward Floor Price, the Forward Cap Price, the Knock-in Price, the Knock-out Price, and the relevant Number of Shares;
- (iii) in respect of a Share Swap Transaction or a Share Basket Swap Transaction, the Initial Price, the Equity Notional Amount, the Knock-in Price, the Knock-out Price, and the relevant Number of Shares;
- (i) in respect of a Share Option Transaction or a Share Basket Option Transaction, the Strike Price, the Number of Options, the Option Entitlement, the Knock-in Price, the Knock-out, and the relevant Number of Shares;
- and, in any case, any other variable relevant to the exercise, settlement, payment or other terms of that Transaction, as determined by the Calculation Agent, which adjustment will be effective as of the date determined by the Calculation Agent to be the effective date of the corresponding adjustment made by the Options Exchange. If options on the relevant Shares are not traded on the Options Exchange, the Calculation Agent will make such adjustment, if any, to any one or more of the relevant variables referred to above or any other variable relevant to the exercise, settlement, payment or other terms of the Transaction as the Calculation Agent determines appropriate, with reference to the rules of and precedents (if any) set by the Options Exchange, to account for the diluting or concentrative effect of any event that, in the determination of the Calculation Agent, would have given rise to an adjustment by the Options Exchange if such options were so traded.