Template:Mdes vs ades: Difference between revisions

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So the two are independent: one is where you want to carry on; one where you don’t. So you don't have to wait for a period of {{eqderivprov|Exchange Disruption}} before invoking a {{eqderivprov|Hedging Disruption}}, and conversely you could — in theory at any rate — designate an {{eqderivprov|Exchange Disruption}} even if there were no {{eqderivprov|Hedging Disruption}} in existence.
So the two are independent: one is where you want to carry on; one where you don’t. So you don't have to wait for a period of {{eqderivprov|Exchange Disruption}} before invoking a {{eqderivprov|Hedging Disruption}}, and conversely you could — in theory at any rate — designate an {{eqderivprov|Exchange Disruption}} even if there were no {{eqderivprov|Hedging Disruption}} in existence.


Now in point of fact, an {{eqderivprov|Exchange Disruption}} usually will count as a {{eqderivprov|Hedging Disruption}} — especially a long one — which might be why the {{eqderivprov|Consequences of Disrupted Days}} wording in Section {{eqderivprov|6.5}} seems to run out of enthusiasm for its own existence, as if {{icds}} suddenly realised the whole world is futile and threw in the towel. After all, if there have been eight straight {{eqderivprov|Disrupted Day}}s, the likelihood that one or other party hasn’t canned the {{eqderivprov|Transaction}} on the grounds of {{eqderivprov|Hedging Disruption}} must be pretty low. <br>
Now in point of fact, an {{eqderivprov|Exchange Disruption}} — especially a long one — usually ''will'' count as a {{eqderivprov|Hedging Disruption}} which might be why the {{eqderivprov|Consequences of Disrupted Days}} wording in Section {{eqderivprov|6.5}} seems to run out of enthusiasm for its own existence, as if {{icds}} suddenly realised the whole world is futile and threw in the towel. After all, if there have been eight straight {{eqderivprov|Disrupted Day}}s, the likelihood that one or other party hasn’t canned the {{eqderivprov|Transaction}} on the grounds of {{eqderivprov|Hedging Disruption}} must be pretty low. <br>

Revision as of 10:00, 27 March 2020

Market Disruption Events vs Additional Disruption Events showdown

In a Nutshell:

So the two are independent: one is where you want to carry on; one where you don’t. So you don't have to wait for a period of Exchange Disruption before invoking a Hedging Disruption, and conversely you could — in theory at any rate — designate an Exchange Disruption even if there were no Hedging Disruption in existence.

Now in point of fact, an Exchange Disruption — especially a long one — usually will count as a Hedging Disruption which might be why the Consequences of Disrupted Days wording in Section 6.5 seems to run out of enthusiasm for its own existence, as if ISDA’s crack drafting squad™ suddenly realised the whole world is futile and threw in the towel. After all, if there have been eight straight Disrupted Days, the likelihood that one or other party hasn’t canned the Transaction on the grounds of Hedging Disruption must be pretty low.