Template:M summ Equity Derivatives 12.7: Difference between revisions

Template:M summ Equity Derivatives 12.7 (view source)

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 And even here, the concept doesn’t work: a {{eqderivprov|Cancellation Amount}} is crafted as the total termination amount for the ''whole'' {{eqderivprov|Transaction}}, not just a valuation of the {{eqderivprov|Equity Amount}} leg. Nor are such swaps otherwise contemplated in the {{eqdefs}}, seeing as there is a much easier way of achieving long exposure to one underlier and short exposure to another: just enter two vanilla {{eqderivprov|Transaction}}s, one long and one short.
+===Ok, how about the User’s Guide to the 2002 Equity Derivatives Definitions?===
+Perhaps, you might thing, the User Guide sheds some light? Well, perhaps indeed. But alack: the little it has to say on the subject sheds light on one question only: that whoever wrote the User’s Guide<ref>Is it just me who finds the idea that ISDA contemplates just a solitary reader of its “User’s Guide”? And that that solitary reader is the JC? Mind you, it could be worse: the 2011 Equity Derivatives Definitions have ''no'' users!</ref> has no better clue to what is meant to be going on that anyone else. For it opines:
+{{quote|“If there are two Determining Parties, each party will determine a Cancellation Amount ''and one half of the total of the Cancellation Amounts is payable''.”}}
+This is, of course, not what Section 12.7(c) says at all.