Derivatives · glossary
A reason to end trades early that involves no fault, such as illegality, a tax event or an event the Schedule adds. It ends only the Affected Transactions, not every trade. Atlas's refinancing triggered one. Clause 5.2 · Chapter 8 · Chapter 11
Explained in Chapter 8, The First Winter: Events of Default, Cross Default and the Two Hats, of Derivatives.
Clause 5.2 lists a second family, the Termination Events. They include illegality, tax events, a credit event upon merger and any Additional Termination Event the Schedule adds. Part 1(g) adds one, and Chapter 11 follows it. Nobody is at fault, so the clause speaks of an Affected Party, not a defaulting one.Read Chapter 8, The First Winter: Events of Default, Cross Default and the Two Hats →
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