Label: |
Equity Derivative Contracts - Swaps |
Concept Guidance: |
This is the value, as at the relevant date, of equity swaps held by the reporting party, consistent with the classification and measurement basis used for derivatives by institutions in accordance with accounting standards.A Swap is a financial instrument representing a transaction in which two parties agree to swap or exchange some obligation, generally a series of cash flows on differing terms.An equity contract is any contract that at least partly transfers the equity risk of an underlying equity security from one party to another.Derivatives are generally defined as those instruments/contracts, where the value is based on other products, and/or on prices associated with financial products. Derivative contracts involve:- Future delivery, receipt or exchange of financial items such as cash or another derivative instrument; or- Future exchange of real assets for financial items where the contract may be tradeable and has a market value.The contracts can either be binding on both parties (e.g. as with a currency swap) or subject to the exercise by one party of a right contained within the contract (as with options).Report this item regardless of whether favourable or unfavourable to the reporting entity.
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Form-Specifc Guidance: |
While not intended as an exhaustive list, Equity derivative contracts may include the following:
- swaps;
- forwards;
- futures;
- purchased options/warrants; and
- similar derivative contracts based on individual equities or equity indices.
Netting should not be applied when reporting amounts within the Statement of Derivative Activity.
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