An entity that determines the price of an investment product such as a swap. A calculation agent calculates the value of a derivative or the amount owing from each party. The agent also establishes the price for a structured product and may act as its guarantor and issuer. The calculation agent is not a fiduciary, but is expected to avoid conflicts of interest and act in good faith. Its decisions are considered binding. Any disagreement over the calculation agent's decisions must be resolved by a disinterested third-party dealer.

In the credit default swap market, the calculation agent establishes the contract's cash settlement price to give the investors an alternative to a physical settlement. This price will be based on the highest available bids from market makers. The calculation agent, who is typically either the seller or a third party, sometimes takes on a number of other roles in more complex transactions.

www.tandfonline.com [PDF]

… labels, the mundane tools and instruments that allow one to calculate and intervene … and an imagined electronic future, the interrelation between devices for calculating the performance … be wary also of assuming or implying that all modes of economic calculation are derivative …

journals.sagepub.com [PDF]

… labels, the mundane tools and instruments that allow one to calculate and intervene … and an imagined electronic future, the interrelation between devices for calculating the performance … be wary also of assuming or implying that all modes of economic calculation are derivative …

www.sciencedirect.com [PDF]

… labels, the mundane tools and instruments that allow one to calculate and intervene … and an imagined electronic future, the interrelation between devices for calculating the performance … be wary also of assuming or implying that all modes of economic calculation are derivative …

www.tandfonline.com [PDF]

… labels, the mundane tools and instruments that allow one to calculate and intervene … and an imagined electronic future, the interrelation between devices for calculating the performance … be wary also of assuming or implying that all modes of economic calculation are derivative …

journals.sagepub.com [PDF]

… labels, the mundane tools and instruments that allow one to calculate and intervene … and an imagined electronic future, the interrelation between devices for calculating the performance … be wary also of assuming or implying that all modes of economic calculation are derivative …

Tags:accountingagentagentsanalysisbasedbasiccalculatecalculatingcalculationcalculatorcalculatorscalculuscomputationalcostcreditdefinitiondilutioneconomiceconomicsequationsequilibriumestateexcelexchangefinancefinancialformulaformulasimportantinterestinvestmentloanmahindramanagerialmarketmarketsmathmethodsmodelspaymentpriceraterealreturnsimulationsswaptimetransaction

## Leave a Reply