Examples of Hedging Party in a sentence
For example, the Hedging Party in a Derived Block Trade may be a dealer, and the counterparty in the Derived Block Trade may be a client of the dealer.
The trade price of a Derived Block Trade is the cost of the hedging transactions by the Hedging Party relating to the Derived Block Trade, plus or minus a fixed differential, or basis, to be added to or subtracted from the cost of the hedging transaction(s), that is agreed to by the parties to the Derived Block Trade as part of the consummation of the Derived Block Trade.
The contract quantity of a Derived Block Trade may vary depending upon the quantity of the hedging transaction(s) relating to the Derived Block Trade that the Hedging Party is able to execute, as further described below.
Additionally, the notification to the Exchange of a Derived Block Trade must include the start time and the end time of the hedging transaction(s) by the Hedging Party relating to the Derived Block Trade.
Derived Block Trade Attributes A Derived Block Trade is a Block Trade in which the trade price and contract quantity of the Block Trade are dependent upon one or more hedging transactions conducted by one of the parties to the Block Trade (referred to as the Hedging Party) that take place after the Block Trade has been consummated between the parties but prior to the submission of the Block Trade to the Exchange.