3.2.2.30 Confirmation without commentary

Following is a sample confirmation for a swaption, without commentary. A sample confirmation with commentary can be found in 3.2.2.20 "Confirmation with commentary"

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Sample Confirmation for Option to enter into an Underlying Swap Transaction without commentary

 

 

 [Letterhead of Party A]

 

 [Date]

 

 

 Reference Number [ ]

 

[Name and Address of Party B]

 

Dear

 

Swaption

The purpose of this letter is to confirm the terms and conditions of the Option entered into between us on the Trade Date specified below (the "Swaption"). This letter constitutes a "Confirmation" as referred to in the Master Agreement specified below. 

 

The definitions and provisions contained in the 2006 ISDA Definitions (as published by the International Swap Dealers Association, Inc.) are incorporated into this Confirmation. In the event of any inconsistency between those definitions and provisions and this Confirmation, this Confirmation will govern.

1. This Confirmation supplements, forms part of, and is subject to, the Master Agreement dated as of [date], as amended and supplemented from time to time (the "Agreement"), between you and us. All provisions contained in the Agreement govern this Confirmation except as expressly modified below. The Swaption is both an "Option" and a "Transaction" for the purpose of the Agreement.

2. The terms of the Swaption are as follows:-

Trade Date: 

Seller: 

Buyer: 

[Premium:] [ ] [payable in [ ] [equal] instalments on each Premium Payment Date] [as follows: ]

[Premium Payment Date[s]:] [Specify date or dates]

[Physical Settlement:  Applicable]

[Cash Settlement Provisions:]

 

[Cash Settlement:  Applicable]

[Cash Settlement Payment Date:]  [The first Business Day after the Notice of Exercise is delivered]

[Cash Settlement

Amount:] 

Option Style: [American/European] Option

Expiration Date: 

Expiration Time:  10.00 am [Sydney] time

[Business Days:] 

[Business Day Convention: [Following/Modified Following/Preceding]]

Calculation Agent: 

Cash Settlement Reference Banks: [           ]

3. The particular terms of the Underlying Transaction to which the Swaption relates are as follows:

Notional Amount:

Trade Date:

Effective Date:

Termination Date: [, subject to adjustment in accordance with the [Following/Modified Following/Preceding] Business Day Convention]

Fixed Amounts:

Fixed Rate Payer: 

Fixed Rate Payer Payment Dates: [, subject to adjustment in accordance with the [Following/Modified Following/Preceding] Business Day Convention]

Fixed Rate: 

Fixed Rate Day Count Fraction: 

 

Floating Amounts:

 

Floating Rate Payer: 

Floating Rate Payer Payment Dates: [, subject to adjustment in accordance with the [Following/Modified Following/Preceding] Business Day Convention]

Floating Rate Option: 

Designated Maturity: 

Spread: 

Floating Rate Day Count Fraction: 

 

Reset Dates: [, subject to adjustment in accordance with the [Following/Modified Following/Preceding] Business Day Convention]

[Business Days]: 

[Business Day Convention: [Following/Modified
Following /Preceding]]

Calculation Agent: 

 

4. Account Details

 

Payments to Seller: 

Payments to Buyer: 

 

[5. Office:]

 

Please confirm that the foregoing correctly sets forth the terms of our agreement by executing the copy of this Confirmation enclosed for that purpose and returning it to us.

 

Yours sincerely

[name of party preparing Confirmation]

By:

Name:

Title:

 

Confirmed as of the date first written:

[name of other party]

By: 

Name:

Title:

 


Last Update Date 29 Jun 2011