Partial Cash Settlement
This Issue in United States
Partial Cash Settlement
Concept of Partial Cash Settlement in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The cash amount paid by a buyer to a seller when a buyer of protection is unable to deliver all of the deliverable obligations. The cash value is determined by the calculation agent seeking quotations from dealers. Partial cash settlement allows the obligation to be settled as a combination of both cash and physical settlement. There are further procedures which the definitions cater for in case the calculation agent cannot obtain the necessary required quotations.
Resources
See Also
- Derivatives Contract
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