Lawyers and dealers have been checking up on documentary provisions for equity derivatives linked to Apple, since Nasdaq warned the stock may be delisted because of a delay in its quarterly filing. While most view a delisting as unlikely, it is a popular reference entity for U.S. retail investment products such as reverse convertibles.
One senior equity derivatives official at a firm which has issued apple-referenced investment notes said the Nasdaq warning served as a reminder to check up on documentary provisions for a delisting event. A lawyer explained a delisting would likely either count as a disruption event, or an event that would trigger the calculation agent to substitute the stock for another.
