What is the “movement option” and how can it be exercised?
A new element in the Supplement is the “movement option”, which is relevant where the DC resolves to hold one or more auctions following a Restructuring credit event, but resolves not to hold an auction for a particular maturity bucket. In this case, Buyer and Seller to a transaction that falls within that maturity bucket may (depending on the factors described in the next paragraph) each have the option to settle the transaction using the price determined for an alternative bucket for which an auction is held. Buyer may exercise the movement option if there is an auction with fewer Deliverable Obligations than those available to settle the particular transaction, and if Buyer exercises the movement option, the final price from any such auction with the largest number of Deliverable Obligations will apply (for example using the final price for the immediately shorter maturity bucket for which an auction is held). Seller may only exercise the movement option if Buyer originally triggere
