Template:Nutshell Equity Derivatives 6.3(a): Difference between revisions

Template:Nutshell Equity Derivatives 6.3(a) (view source)

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-{{eqderivprov|6.3(a)}} “{{eqderivprov|Market Disruption Event}}” means, for a {{eqderivprov|Share}} or {{eqderivprov|Index}}, a material {{eqderivprov|Trading Disruption}} or {{eqderivprov|Exchange Disruption}} during the one hour before the relevant {{eqderivprov|Valuation Time}} (etc), or an {{eqderivprov|Early Closure}}. <br>
+{{eqderivprov|6.3(a)}} “'''{{eqderivprov|Market Disruption Event}}'''” means
-The percentage contribution of an {{eqderivprov|Index}} constituent to the {{eqderivprov|Index}} level will be based on that its contribution to the overall level of the {{eqderivprov|Index}} immediately before the occurrence of the {{eqderivprov|Market Disruption Event}}. <br>
+:(i) a material {{eqderivprov|Trading Disruption}} or {{eqderivprov|Exchange Disruption}} to a {{eqderivprov|Share}} or {{eqderivprov|Index}} during the hour before the {{eqderivprov|Valuation Time}} (etc), or
+:(ii) an {{eqderivprov|Early Closure}}. <br>
+To work out whether there is a {{eqderivprov|Market Disruption Event}} on an {{eqderivprov|Index}} due to a {{eqderivprov|Market Disruption Event}} on one of its component securities, the {{isdaprov|Calculation Agent}} will determine the percentage that security contributes to the {{eqderivprov|Index}} by comparing
+:(x) how much of the {{eqderivprov|Index}} level is attributable to that security with
+:(y) the {{eqderivprov|Index}} level just before the {{eqderivprov|Market Disruption Event}} happened.<br>