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Template:M gen Equity Derivatives 12.9: Difference between revisions
Template:M gen Equity Derivatives 12.9 (view source)
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Section {{eqderivprov|12.9}} has seven elective “{{eqderivprov|Additional Disruption Events}}”. These grew out of consensus market practice after the publication of the 1996 Equity | Section {{eqderivprov|12.9}} has seven elective “{{eqderivprov|Additional Disruption Events}}”. These grew out of consensus market practice after the publication of the 1996 Equity Derivative Definitions. | ||
{{eqderivprov|Additional Disruption Events}} are elective, so don’t apply unless specifically turned on. There are overlaps: {{eqderivprov|Change in Law}} and {{eqderivprov|Hedging Disruption}}, for example. | {{eqderivprov|Additional Disruption Events}} are elective, so don’t apply unless specifically turned on. There are overlaps: {{eqderivprov|Change in Law}} and {{eqderivprov|Hedging Disruption}}, for example. | ||
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Given that {{eqderivprov|Change in Law}} contains no cure period and {{eqderivprov|Hedging Disruption}} contains a two {{eqderivprov|Scheduled Trading Days}}’ cure period, parties should consider specifying a priority between the two {{eqderivprov|Additional Disruption Events}} in the related {{eqderivprov|Confirmation}}. | Given that {{eqderivprov|Change in Law}} contains no cure period and {{eqderivprov|Hedging Disruption}} contains a two {{eqderivprov|Scheduled Trading Days}}’ cure period, parties should consider specifying a priority between the two {{eqderivprov|Additional Disruption Events}} in the related {{eqderivprov|Confirmation}}. | ||
{{eqderivprov|Failure to Deliver}} applies only to {{eqderivprov|Physically-settled}} {{eqderivprov| | {{eqderivprov|Failure to Deliver}} applies only to {{eqderivprov|Physically-settled}} {{eqderivprov|Transaction}}s. In the [[synthetic equity]] world, one doesn’t ride the physically settled bus, so that is one more reason we don’t let it trouble the scorers. | ||