Template:Capsule equity derivative dividend payments: Difference between revisions

While the definitions assume that an {{eqderivprov|Equity Amount Payer}} will manufacture {{eqderivprov|Dividend Amount}}s on the {{eqderivprov|Cash Settlement Payment Date}}, (typically at the end of a {{eqderivprov|Dividend Period}}) and therefore necessarily builds in a period between receipt of underlying and payment on the swap, the definitions do not contemplate any interest accrual in that period. In practice users tend to pay when paid notwithstanding the text of the equity derivatives definitions. If you are anything like the JC, you will quietly wonder why we bother negotiating contracts in the first place, if operations personnel are just going to ignore them in practice. If you are an operations person, you may quietly wonder exactly the same thing.

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