Template:M summ Equity Derivatives 9

Not enormously common, since the whole point of an equity derivative is to have price exposure without ever taking title to the Shares, with all the attendant tax, disclosures, mandatory take-over obligations and other miscellaneous regulatory hair that comes from physically owning shares that it would imply, but for you exotic types who might want to do this — especially those trading Forwards, Options — being contracts to maybe acquired Shares at a later date and not necessarily pure synthetic plays — here they are. The JC’s specialty bing synthetic equity swaps, this isn’t something that we have spent a lot of time on, but as we read them, the provisions are largely mechanical and while ISDA’s crack drafting squad™’s prose as a quality to it only Heath Robinson’s mother could love, when you boil it down, as we have done in our nutshell versions (see panel), they do make sense in a “that figures, I guess” or “that really ought to go without saying” kind of way.

So sorry for not having a lot to say, but here: knock yourself out.