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Template:M comp disc Equity Derivatives 12.9(a)(ix): Difference between revisions
Template:M comp disc Equity Derivatives 12.9(a)(ix) (view source)
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Compare Hedging Party, Determining Party and Calculation Agent — between them rich fodder for [[buy-side legal eagle]]s to make a nuisance of themselves arguing the toss over plainly fatuous “potential” risks. | Compare {{eqderivprov|Hedging Party}}, {{eqderivprov|Determining Party}} and {{eqderivprov|Calculation Agent}} — between them rich fodder for [[buy-side legal eagle]]s to make a nuisance of themselves arguing the toss over plainly fatuous “potential” risks. This is good for the healthy revenues that flow into that cottage industry of master agreement negotiations, but an appalling waste of time on any other axis. | ||
Here’s how it is: the [[swap dealer]] is the one you go to because of its market access, back-office systems and attractive financing. You place, or [[Equity give-up|give up]], your orders to the swap dealer; the swap dealer executes them for its own book, and provides you the return of your synthetic investment through a [[delta-one]] equity swap. | Here’s how it is: the [[swap dealer]] is the one you go to because of its market access, back-office systems and attractive financing. You place, or [[Equity give-up|give up]], your orders to the swap dealer; the swap dealer executes them for its own book, and provides you the return of your synthetic investment through a [[delta-one]] equity swap. | ||