Examples of Derivative Transaction in a sentence
Party A and Party B agree that, each time they enter into a Master Transaction, they enter into a separate and independent Credit Derivative Transaction (a “Component Transaction”) in respect of each Reference Entity listed in the Relevant Annex (as defined in the General Terms Confirmation defined below).
Subject to Paragraph 7.5 of the General Terms Confirmation, each Component Transaction (a) constitutes a separate and independent Credit Derivative Transaction between Party A and Party B with respect to one of the Reference Entities listed in the Relevant Annex, (b) shall not be affected by any other Credit Derivative Transaction between Party A and Party B and (c) shall operate independently of each other Component Transaction in all respects.
You should consider what you intend to achieve from the Derivative Transaction, including your financial and operational resources, and any tax and accounting considerations.
Considering the possible risks, you should ensure that you have all necessary information you require to assess a Derivative Transaction before deciding on its appropriateness for you.
The preparation of a Transaction Supplement shall be the responsibility of the [Buyer]/[Seller] in respect of the Credit Derivative Transaction to which the relevant Transaction Supplement relates.