Template:2002 ISDA Equity Derivatives Definitions 11.2(c): Difference between revisions

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:::(B) in respect of a {{eqderivprov|Share Forward Transaction}} or a Share Basket Forward Transaction, the {{eqderivprov|Forward Price}}, the {{eqderivprov|Forward Floor Price}}, the {{eqderivprov|Forward Cap Price}}, the Knock-in Price, the {{eqderivprov|Knock-out Price}}, and the relevant {{eqderivprov|Number of Shares}};  
:::(B) in respect of a {{eqderivprov|Share Forward Transaction}} or a Share Basket Forward Transaction, the {{eqderivprov|Forward Price}}, the {{eqderivprov|Forward Floor Price}}, the {{eqderivprov|Forward Cap Price}}, the Knock-in Price, the {{eqderivprov|Knock-out Price}}, and the relevant {{eqderivprov|Number of Shares}};  
:::(C) 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}};  
:::(C) 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}};  
:and, in any case, any other variable relevant to the exercise, settlement, payment or other terms of that {{eqderivprov|Transaction}} as the {{eqderivprov|Calculation Agent}} determines appropriate to account for that diluting or concentrative effect (provided that no adjustments will be made to account solely for changes in volatility, expected dividends, stock loan rate or liquidity relative to the relevant {{eqderivprov|Share}}) and  
::and, in any case, any other variable relevant to the exercise, settlement, payment or other terms of that {{eqderivprov|Transaction}} as the {{eqderivprov|Calculation Agent}} determines appropriate to account for that diluting or concentrative effect (provided that no adjustments will be made to account solely for changes in volatility, expected dividends, stock loan rate or liquidity relative to the relevant {{eqderivprov|Share}}) and  
::(ii) determine the effective date(s) of the adjustment(s).  
::(ii) determine the effective date(s) of the adjustment(s).  
:The {{eqderivprov|Calculation Agent}} may (but need not) determine the appropriate adjustment(s) by reference to the adjustment(s) in respect of such {{eqderivprov|Potential Adjustment Event}} made by an options exchange to options on the relevant {{eqderivprov|Shares}} traded on such options exchange. <br>
:The {{eqderivprov|Calculation Agent}} may (but need not) determine the appropriate adjustment(s) by reference to the adjustment(s) in respect of such {{eqderivprov|Potential Adjustment Event}} made by an options exchange to options on the relevant {{eqderivprov|Shares}} traded on such options exchange. <br>

Latest revision as of 09:17, 18 May 2018

11.2(c) If “Calculation Agent Adjustment” is specified as the Method of Adjustment in the related Confirmation of a Share Transaction or Share Basket Transaction (or if no Method of Adjustment is specified in the related Confirmation for such Transaction), then following the declaration by the Issuer of the terms of any Potential Adjustment Event, the Calculation Agent will determine whether such Potential Adjustment Event has a diluting or concentrative effect on the theoretical value of the relevant Shares and, if so, will
(i) make the corresponding adjustment(s), if any, to any one or more of:
(A) 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 Knockout Price, and the relevant Number of Shares;
(B) 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;
(C) 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;
and, in any case, any other variable relevant to the exercise, settlement, payment or other terms of that Transaction as the Calculation Agent determines appropriate to account for that diluting or concentrative effect (provided that no adjustments will be made to account solely for changes in volatility, expected dividends, stock loan rate or liquidity relative to the relevant Share) and
(ii) determine the effective date(s) of the adjustment(s).
The Calculation Agent may (but need not) determine the appropriate adjustment(s) by reference to the adjustment(s) in respect of such Potential Adjustment Event made by an options exchange to options on the relevant Shares traded on such options exchange.