83,193
edits
Template:M summ Equity Derivatives 12.7: Difference between revisions
Template:M summ Equity Derivatives 12.7 (view source)
Revision as of 21:08, 10 January 2022
, 10 January 2022no edit summary
Amwelladmin (talk | contribs) No edit summary |
Amwelladmin (talk | contribs) No edit summary |
||
| Line 1: | Line 1: | ||
===Section {{eqderivprov|12.7(c)}} and the curious question of the multiple {{eqderivprov|Determination Agent}}s=== | ===Section {{eqderivprov|12.7(c)}} and the curious question of the multiple {{eqderivprov|Determination Agent}}s=== | ||
Now, here is a funny thing. | [[12.7(c) - Equity Derivatives Provision|Now]], here is a funny thing. | ||
In its ever-unquenched thirst to cater for every conceivable eventuality, however inconceivable, [[the ’squad]] devoted themselves in Section {{eqderivprov|12.7(c)}}(ii) to the contingency that there might be ''two'' {{eqderivprov|Determining Parties}} appointed to hash out the {{eqderivprov|Cancellation Amount}} that applies for a {{eqderivprov|Transaction}}. This, we think, imagines some kind of collective [[co-calculation agent]] regime where the parties each have their own Man In Havana making independent calculations with the intention of split whatever difference there may be. | In its ever-unquenched thirst to cater for every conceivable eventuality, however inconceivable, [[the ’squad]] devoted themselves in Section {{eqderivprov|12.7(c)}}(ii) to the contingency that there might be ''two'' {{eqderivprov|Determining Parties}} appointed to hash out the {{eqderivprov|Cancellation Amount}} that applies for a {{eqderivprov|Transaction}}. This, we think, imagines some kind of collective [[co-calculation agent]] regime where the parties each have their own Man In Havana making independent calculations with the intention of split whatever difference there may be. | ||
| Line 33: | Line 33: | ||
Logic should say the number we are after is 103, yes? The ''average''. But that is not what Section 12.7(c) delivers. | Logic should say the number we are after is 103, yes? The ''average''. But that is not what Section 12.7(c) delivers. | ||
{{quote|“...an amount will be payable equal to one-half of the difference between the {{eqderivprov|Cancellation Amount}} of the party with the higher {{eqderivprov|Cancellation Amount}} (“X”) and the {{eqderivprov|Cancellation Amount}} of the party with the lower {{eqderivprov|Cancellation Amount}} (“Y”) and Y shall pay it to X.}} | {{quote|“...an amount will be payable equal to one-half of the difference between the {{eqderivprov|Cancellation Amount}} of the party with the higher {{eqderivprov|Cancellation Amount}} (“X”) and the {{eqderivprov|Cancellation Amount}} of the party with the lower {{eqderivprov|Cancellation Amount}} (“Y”) and Y shall pay it to X.”}} | ||
The difference between ''X'' and ''Y'' (104 - 102) is ''two''. ''Half'' of that difference is ''one''. This Cancellation Amount is, to put not too fine a point on it, wildly wrong. | The difference between ''X'' and ''Y'' (104 - 102) is ''two''. ''Half'' of that difference is ''one''. This Cancellation Amount is, to put not too fine a point on it, wildly wrong. | ||