Unscheduled Rebalance definition

Unscheduled Rebalance means an unscheduled rebalance occurring on a Valuation Date on which the rebalancing mechanism built in the relevant Index or Investment Strategy in respect of a Series of ETP Securities has been triggered by a change in the price of the corresponding Reference Asset of such Index or Investment Strategy by more than the relevant trigger level for the Index or Investment Strategy in accordance with its methodology.

Unscheduled Rebalance means an unscheduled rebalance occurring on a Valuation Date on which the rebalancing mechanism built in the relevant Index or Investment Strategy in respect of a Series of ETP Securities has been triggered by a change in the price of the corresponding Reference Asset of such Index or Investment Strategy by more than the relevant trigger level for the Index or Investment Strategy in accordance with its methodology. Rebalance Period return and simulated examples Each ETP Security offering Leveraged Exposure or Short Exposure has a Rebalance Period as set out in the Final Terms. At the end of such Rebalance Period, the Portfolio Administrator will instruct the Margin Loan Provider to buy or sell Reference Assets in such amounts as may be required so that, at the beginning of the immediately following Rebalancing Period, the ETP Securities offer their Leveraged Exposure or Short Exposure to the Reference Assets determined by their stated Leverage Factor. If the Rebalance Period is longer than a day, the exposure of such ETP Securities to their Reference Assets will not be rebalanced daily to maintain such exposure constant by reference to the Leverage Factor. As such, the effective level of Leveraged Exposure or Short Exposure offered by such ETP Securities, as the case may be, will vary on each day of the Rebalance Period as prices of the Reference Assets fluctuate and subscriptions and redemptions are fulfilled by the Issuer on a daily basis. Simulated Examples For the purposes of this sub-section and the simulated examples below, “ETP Security” will refer to ETP Securities offering Leveraged Exposure or Short Exposure with a Rebalance Period of one day. Each ETP Security is "daily leveraged" in that on any given day, the change in the ETP Security Value (excluding the effects of any applicable fees and adjustments) will reflect the performance of the relevant Index or Investment Strategy on that day. The ETP Securities seek to track the relevant Index’s return or pursue the relevant Investment Strategy for a single Valuation Date only, as measured from the closing price on that Valuation Date to the closing price on the immediately following Valuation Date, and not for any other period. The return of ETP Securities for a period longer than one day is the result of its return for each day compounded over all days in that period. The simulated returns included in the charts set out below are included merely as examples of possible eventualities in order to d...

Examples of Unscheduled Rebalance in a sentence

• On any Valuation Date thereafter (which is not a Disrupted Day and on which an Unscheduled Rebalance does not occur), the ETP Security Value is calculated as the ETP Security Value on the immediately preceding Valuation Date adjusted by (i) the change in the value of the Collateral Assets since such preceding Valuation Date, minus (ii) the applicable Funding and Brokerage Fees, minus (iii) the Arranger Fee, plus (iv) Value Adjustments (as defined below).

• On a day in which an Unscheduled Rebalance is triggered, the Rebalance Period return of the relevant Series of ETP Securities will not be equal to the Leverage Factor of such Series multiplied by the Rebalance Period price change of the respective Reference Assets.

• On any Valuation Date thereafter (which isnot a Disrupted Day and on which an Unscheduled Rebalance does not occur), the ETP Security Value is calculated as the ETP Security Value on the immediately preceding Valuation Date adjusted by (i) the change in the value of the Collateral Assets since such preceding Valuation Date, minus (ii) the applicable Funding and Brokerage Fees, minus (iii) the Arranger Fee, plus (iv) Value Adjustments (as defined below).

• On a day in which an Unscheduled Rebalance is triggered, the Rebalance Period return of therelevant Series of ETP Securities will not be equal to the Leverage Factor of such Series multiplied by the Rebalance Period price change of the respective Reference Assets.

• When an Unscheduled Rebalance is triggered, the Chief Investment Officer will rebalance Investment Funds within the breached Outcomes toward their Target Weights.

• Amended by P.L.184-1991, SEC.29; P.L.113-1999, SEC.12; P.L.170-2013, SEC.68.