Filed Pursuant to Rule 433
Registration Statement No. 333-259205
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The information in this preliminary terms supplement is not complete and may be changed.
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Preliminary Terms Supplement
Subject to Completion:
Dated August 12, 2022
Pricing Supplement Dated August __, 2022 to the Product Prospectus Supplement ERN-ERN-1 dated March 3, 2022, and the Prospectus Supplement and the
Prospectus, each Dated September 14, 2021
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$__________
Buffered Enhanced Return Notes Linked to a
Basket of Two Indices and an Exchange
Traded Fund, Due November 28, 2023
Royal Bank of Canada |
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Basket Component
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Component Weight
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Initial Level
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S&P 500® Index (SPX)
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70%
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Russell 2000® Index (RTY)
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20%
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iShares® MSCI Emerging Markets ETF (EEM)
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10%
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The Notes provide a 125% leveraged positive return if the value of the Basket increases from the Initial Basket Level to the Final Basket Level, subject to the Maximum Redemption Amount of 121.50% of the principal amount.
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If the Final Basket Level is less than the Initial Basket Level by no more than 10%, investors will receive the principal amount. However, investors will lose 1% of the principal amount of the Notes for each 1% decrease from the Initial
Basket Level to the Final Basket Level of more than 10%.
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Any payments on the Notes are subject to our credit risk.
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The Notes do not pay interest.
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The Notes will not be listed on any securities exchange.
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Per Note
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Total
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Price to public(1)
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100.00%
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$
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Underwriting discounts and commissions(1)
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0.65%
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$
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Proceeds to Royal Bank of Canada
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99.35%
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$
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Buffered Enhanced Return Notes
Royal Bank of Canada
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Issuer:
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Royal Bank of Canada (“Royal Bank”)
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Underwriter:
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RBC Capital Markets, LLC (“RBCCM”)
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Reference
Assets:
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The Notes are linked to the value of a basket (the “Basket”) consisting of two equity indices and one exchange traded fund (each, a “Basket Component,” collectively, the “Basket Components”). The
Basket Components and their respective Component Weights are indicated in the table on the cover page of this document.
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Minimum
Investment:
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$1,000 and minimum denominations of $1,000 in excess thereof
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Trade Date
(Pricing Date):
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August 22, 2022
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Issue Date:
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August 25, 2022
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Valuation Date:
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November 22, 2023
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Maturity Date:
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November 28, 2023
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Payment at
Maturity (if held
to maturity):
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If the Final Basket Level is greater than the Initial Basket Level (that is, the Percentage Change is positive, then the investor will
receive, for each $1,000 in principal amount, the lesser of:
1.$1,000 + [$1,000 x (Percentage Change x Leverage Factor)] and
2. Maximum Return.
If the Final Basket Level is less than or equal to the Initial Basket Level, but is not less than
the Buffer Level (that is, the Percentage Change is between 0% and -10%), then the investor will receive the principal amount.
If the Final Basket Level is less than the Buffer Level (that is, the Percentage Change is between -10.01% and -100%), then the investor
will receive, for each $1,000 in principal amount:
$1,000 + [$1,000 x (Percentage Change + Buffer Percentage)]
In this case, the payment on the Notes will be less than the principal amount, and you could lose some or a substantial portion of the principal amount.
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Maximum
Return:
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$1,215 per $1,000 in principal amount (121.50% multiplied by the principal amount)
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Leverage
Factor:
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125%
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Buffer
Percentage:
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10%
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Buffered Enhanced Return Notes
Royal Bank of Canada
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Initial Basket
Level:
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The Initial Basket Level will be set to 100 on the Trade Date.
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Buffer Level:
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The Buffer Level will be set to 90 on the Trade Date.
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Final Basket
Level:
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The Final Basket Level will be calculated as follows:
100 × [1 + (the sum of, for each Basket Component, the Basket Component return multiplied by its Component Weight)]
Each of the Basket Component returns set forth above refers to the percentage change from the applicable Initial Level to the applicable Final Level,
calculated as follows:
Final Level – Initial Level
Initial Level
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Percentage
Change:
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The Percentage Change of the Basket, expressed as a percentage and rounded to two decimal places, will be equal to:
Final Basket Level – Initial Basket Level
Initial Basket Level
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Initial Level:
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With respect to each Basket Component, its closing level (in the case of an Index) or its closing price (in the case of the ETF) on the Trade Date. The Initial Level of each
Basket Component will be set forth on the cover page of the final pricing supplement relating to the Notes.
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Final Level:
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With respect to each Basket Component, its closing level (in the case of an Index) or its closing price (in the case of the ETF) on the Valuation Date.
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Principal at
Risk:
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The Notes are NOT principal protected. You could lose a substantial portion of your principal amount at maturity if the Final Basket Level is less than the
Initial Basket Level by more than the Buffer Percentage.
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Calculation
Agent:
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RBCCM
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U.S. Tax
Treatment:
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By purchasing a Note, each holder agrees (in the absence of a change in law, an administrative determination or a judicial ruling to the contrary) to treat the Note as a
pre-paid cash-settled derivative contract in respect of the Basket for U.S. federal income tax purposes. However, the U.S. federal income tax consequences of your investment in the Notes are uncertain and the Internal Revenue Service could
assert that the Notes should be taxed in a manner that is different from that described in the preceding sentence. Please see the section below, “Supplemental Discussion of U.S. Federal Income Tax Consequences,” and the discussion (including
the opinion of our special U.S. tax counsel, Ashurst LLP) in the product prospectus supplement dated March 3, 2022 under “Supplemental Discussion of U.S. Federal Income Tax Consequences,” which apply to the Notes.
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Secondary
Market:
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RBCCM (or one of its affiliates), though not obligated to do so, may maintain a secondary market in the Notes after the issue date. The amount
that you may receive upon sale of your Notes prior to maturity may be substantially less than the principal amount of your Notes.
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Listing:
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The Notes will not be listed on any securities exchange.
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Buffered Enhanced Return Notes
Royal Bank of Canada
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Clearance and
Settlement:
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DTC global (including through its indirect participants Euroclear and Clearstream, Luxembourg as described under “Ownership and Book-Entry Issuance” in the prospectus dated
September 14, 2021).
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Terms
Incorporated in
the Master
Note:
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All of the terms appearing on the cover page and above the item captioned “Secondary Market” on pages P-2 and P-3 of this terms supplement, the section "Additional Terms
Relating to the Indices" set forth below, and the terms appearing under the captions “General Terms of the Notes” and “Supplemental Discussion of U.S. Federal Income Tax Consequences” in the product prospectus supplement dated March 3, 2022,
as modified by this terms supplement.
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Buffered Enhanced Return Notes
Royal Bank of Canada
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Buffered Enhanced Return Notes
Royal Bank of Canada
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Example 1—
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Calculation of the Payment at Maturity where the Percentage Change is positive.
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Percentage Change:
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5%
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Payment at Maturity:
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$1,000 + [$1,000 x (5% x 125%)] = $1,062.50
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On a $1,000 investment, a 5% Percentage Change results in a Payment at Maturity of $1,062.50, a 6.25% return on the Notes.
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Example 2—
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Calculation of the Payment at Maturity where the Percentage Change is positive, but the payment on the Notes is subject to the Maximum Return.
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Percentage Change:
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20%
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Payment at Maturity:
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$1,000 + [$1,000 x (20% x 125%)] = $1,250
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On a $1,000 investment, a 20% Percentage Change result would result in a Payment at Maturity of $1,250. However, the Maximum Return is $1,215. Accordingly, the payment on the
Notes will be $1,215, equal to a return of 21.50%.
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Example 3—
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Calculation of the Payment at Maturity where the Percentage Change is negative (but the Final Basket Level is not less than the Initial Basket Level by more than the Buffer
Percentage).
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Percentage Change:
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-5%
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Payment at Maturity:
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$1,000
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On a $1,000 investment, a -5% Percentage Change results in a Payment at Maturity of $1,000, a 0% return on the Notes.
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Example 4—
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Calculation of the Payment at Maturity where the Final Basket Level is less than the Buffer Level.
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Percentage Change:
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-40%
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Payment at Maturity:
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$1,000 + [$1,000 x (-40% + 10%)] = $700
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On a $1,000 investment, a -40% Percentage Change results in a Payment at Maturity of $700, a -30% return on the Notes.
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Buffered Enhanced Return Notes
Royal Bank of Canada
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Hypothetical Final Basket Level
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Hypothetical Percentage
Change
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Redemption Amount as
Percentage of Principal Amount
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Redemption Amount
per $1,000 in Principal
Amount
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140.00
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40.00%
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150.00%
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$1,215.00
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130.00
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30.00%
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137.50%
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$1,215.00
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120.00
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20.00%
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125.00%
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$1,215.00
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117.20
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17.20%
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121.50%
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$1,215.00
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110.00
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10.00%
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112.50%
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$1,125.00
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105.00
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5.00%
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106.25%
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$1,062.50
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100.00
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0.00%
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100.00%
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$1,000.00
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98.00
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-2.00%
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100.00%
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$1,000.00
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95.00
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-5.00%
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100.00%
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$1,000.00
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90.00
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-10.00%
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100.00%
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$1,000.00
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80.00
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-20.00%
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90.00%
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$900.00
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70.00
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-30.00%
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80.00%
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$800.00
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60.00
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-40.00%
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70.00%
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$700.00
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50.00
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-50.00%
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60.00%
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$600.00
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40.00
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-60.00%
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50.00%
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$500.00
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20.00
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-80.00%
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30.00%
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$300.00
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10.00
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-90.00%
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20.00%
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$200.00
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0.00
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-100.00%
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10.00%
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$100.00
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Buffered Enhanced Return Notes
Royal Bank of Canada
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You May Receive Less than the Principal Amount at Maturity – Investors in the Notes will lose some or a substantial portion of their principal amount if the Final Basket
Level is less than the Initial Basket Level by more than the Buffer Percentage. In such a case, you will lose 1% of the principal amount of your Notes for each 1% that the Final Basket Level is less than the Buffer Level. You could lose up
to 90% of the principal amount at maturity.
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The Notes Do Not Pay Interest and Your Return May Be Lower than the Return on a Conventional Debt Security of Comparable Maturity – There will be no periodic interest
payments on the Notes as there would be on a conventional fixed-rate or floating-rate debt security having the same maturity. The return that you will receive on the Notes, which could be negative, may be less than the return you could earn
on other investments. Even if your return is positive, your return may be less than the return you would earn if you purchased one of our conventional senior interest bearing debt securities.
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Your Potential Payment at Maturity Is Limited – The Notes will provide less opportunity to participate in the appreciation of the
Reference Asset than an investment in a security linked to the Reference Asset providing full participation in the appreciation, because the payment at maturity will not exceed the Maximum Redemption Amount. Accordingly, your return on the
Notes may be less than your return would be if you made an investment in a security directly linked to the positive performance of the Basket.
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You Will Not Have Any Rights to the Securities Represented by the Basket Components – As a holder of the Notes, you will not have voting rights or rights to receive cash
dividends or other distributions or other rights that holders of securities represented by a Basket Component would have. The Final Levels of the Indices will not reflect any dividends paid on the securities included in those Basket
Components, and you will not be entitled to receive any dividends or distributions paid on the ETF; accordingly, any positive return on the Notes may be less than the potential positive return on those securities.
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Payments on the Notes Are Subject to Our Credit Risk, and Changes in Our Credit Ratings Are Expected to Affect the Market Value of the Notes – The Notes are our senior
unsecured debt securities. As a result, your receipt of the amount due on the Maturity Date is dependent upon our ability to repay our obligations at that time. This will be the case even if the value of the Basket increases after the Trade
Date. No assurance can be given as to what our financial condition will be at the maturity of the Notes.
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Changes in the Value of One Basket Component May Be Offset by Changes in the Value of the Other Basket Components – A change in the value of one Basket Component may not
correlate with changes in the value of the other Basket Components. The value of one Basket Component may increase, while the values of the other Basket Components may not increase as much, or may even decrease. Therefore, in determining the
value of the Basket as of any time, increases in the value of one Basket Component may be moderated, or wholly offset, by lesser increases or decreases in the value of the other Basket Components. Because of its larger weight in the Basket,
any decreases in the value of the SPX will have a greater adverse impact on the payments on the Notes as compared to similar decreases in the values of the other Basket Components.
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Buffered Enhanced Return Notes
Royal Bank of Canada
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There May Not Be an Active Trading Market for the Notes—Sales in the Secondary Market May Result in Significant Losses — There may be little or no secondary market for the
Notes. The Notes will not be listed on any securities exchange. RBCCM and our other affiliates may make a market for the Notes; however, they are not required to do so. RBCCM or any of our other affiliates may stop any market-making
activities at any time. Even if a secondary market for the Notes develops, it may not provide significant liquidity or trade at prices advantageous to you. We expect that transaction costs in any secondary market would be high. As a result,
the difference between bid and asked prices for your Notes in any secondary market could be substantial.
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The Initial Estimated Value of the Notes Will Be Less than the Price to the Public —The initial estimated value that will be set forth
on the cover page of the final pricing supplement for the Notes does not represent a minimum price at which we, RBCCM or any of our affiliates would be willing to purchase the Notes in any secondary market (if any exists) at any time. If you
attempt to sell the Notes prior to maturity, their market value may be lower than the price you paid for them and the initial estimated value. This is due to, among other things, changes in the value of the Basket, the borrowing rate we pay
to issue securities of this kind, and the inclusion in the price to the public of the underwriting discount and the estimated costs relating to our hedging of the Notes. These factors, together with various credit, market and economic factors
over the term of the Notes, are expected to reduce the price at which you may be able to sell the Notes in any secondary market and will affect the value of the Notes in complex and unpredictable ways. Assuming no change in market conditions
or any other relevant factors, the price, if any, at which you may be able to sell your Notes prior to maturity may be less than your original purchase price, as any such sale price would not be expected to include the underwriting discount
and the hedging costs relating to the Notes. In addition to bid-ask spreads, the value of the Notes determined by RBCCM for any secondary market price is expected to be based on the secondary rate rather than the internal funding rate used to
price the Notes and determine the initial estimated value. As a result, the secondary price will be less than if the internal funding rate was used. The Notes are not designed to be short-term trading instruments. Accordingly, you should be
able and willing to hold your Notes to maturity.
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The Initial Estimated Value of the Notes that We Will Provide in the Final Pricing Supplement Will Be an Estimate Only, Calculated as of the Time the Terms of the Notes Are Set —
The initial estimated value of the Notes will be based on the value of our obligation to make the payments on the Notes, together with the mid-market value of the derivative embedded in the terms of the Notes. See “Structuring the Notes”
below. Our estimate will be based on a variety of assumptions, including our credit spreads, expectations as to dividends, interest rates and volatility, and the expected term of the Notes. These assumptions are based on certain forecasts
about future events, which may prove to be incorrect. Other entities may value the Notes or similar securities at a price that is significantly different than we do.
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Our Business Activities May Create Conflicts of Interest — We and our affiliates expect to engage in trading activities related to the Basket Components or the securities
that they represent that are not for the account of holders of the Notes or on their behalf. These trading activities may present a conflict between the holders’ interests in the Notes and the interests we and our affiliates will have in
their proprietary accounts, in facilitating transactions, including options and other derivatives transactions, for their customers and in accounts under their management.
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Buffered Enhanced Return Notes
Royal Bank of Canada
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An Investment in Notes Linked to the RTY Is Subject to Risks Associated in Investing in Stocks With a Small Market Capitalization — The
RTY consists of stocks issued by companies with relatively small market capitalizations. These companies often have greater stock price volatility, lower trading volume and less liquidity than large-capitalization companies. As a result, the
level of the RTY may be more volatile than that of a market measure that does not track solely small-capitalization stocks. Stock prices of small-capitalization companies are also generally more vulnerable than those of large-capitalization
companies to adverse business and economic developments, and the stocks of small-capitalization companies may be thinly traded, and be less attractive to many investors if they do not pay dividends. In addition, small capitalization companies
are often less well-established and less stable financially than large-capitalization companies and may depend on a small number of key personnel, making them more vulnerable to loss of those individuals. Small capitalization companies tend
to have lower revenues, less diverse product lines, smaller shares of their target markets, fewer financial resources and fewer competitive strengths than large-capitalization companies. These companies may also be more susceptible to adverse
developments related to their products or services.
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An Investment in the Notes Is Subject to Risks Relating to Non-U.S. Securities Markets — Because foreign companies or foreign equity securities held by the EEM are publicly
traded in the applicable foreign countries and are denominated in non-U.S. currencies, an investment in the Notes involves particular risks. For example, the non-U.S. securities markets may be more volatile than the U.S. securities markets,
and market developments may affect these markets differently from the U.S. or other securities markets. Direct or indirect government intervention to stabilize the securities markets outside the U.S., as well as cross-shareholdings in certain
companies, may affect trading prices and trading volumes in those markets. Also, the public availability of information concerning the foreign issuers may vary depending on their home jurisdiction and the reporting requirements imposed by
their respective regulators. In addition, the foreign issuers may be subject to accounting, auditing and financial reporting standards and requirements that differ from those applicable to U.S. reporting companies.
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An Investment in the Notes Is Subject to Risks Associated with Emerging Markets — Investments in securities linked directly or indirectly to emerging market equity
securities, such as the securities held by the EEM, involve many risks, including, but not limited to: economic, social, political, financial and military conditions in the emerging market; regulation by national, provincial, and local
governments; less liquidity and smaller market capitalizations than exist in the case of many large U.S. companies; different accounting and disclosure standards; and political uncertainties. Stock prices of emerging market companies may be
more volatile and may be affected by market developments differently than U.S. companies. Government intervention to stabilize securities markets and cross-shareholdings may affect prices and volume of trading of the securities of emerging
market companies. Economic, social, political, financial and military factors could, in turn, negatively affect such companies’ value. These factors could include changes in the emerging market government’s economic and fiscal policies,
possible imposition of, or changes in, currency exchange laws or other laws or restrictions applicable to the emerging market companies or investments in their securities, and the possibility of fluctuations in the rate of exchange between
currencies. Moreover, emerging market economies may differ favorably or unfavorably from the U.S. economy in a variety of ways, including growth of gross national product, rate of inflation, capital reinvestment, resources and
self-sufficiency. You should carefully
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Buffered Enhanced Return Notes
Royal Bank of Canada
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• |
The Notes Are Subject to Exchange Rate Risks — The share price of the
EEM will fluctuate based in large part upon its net asset value, which will in turn depend in part upon changes in the value of the currencies in which the stocks held by the EEM are traded. Accordingly, investors in the Notes will be exposed
to currency exchange rate risk with respect to each of the currencies in which the stocks held by the EEM are traded. An investor’s net exposure will depend on the extent to which these currencies strengthen or weaken against the U.S. dollar.
If the dollar strengthens against these currencies, the net asset value of the EEM will be adversely affected and the price of the EEM, and consequently, the market value of the Notes may decrease.
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We Cannot Control Actions by the Sponsor of Any Index — The policies of the sponsor of each Index, and the sponsor of the underlying index for the EEM, may adjust that index
in a way that may adversely impact the payments on the Notes. A sponsor may change the composition of that index, or the methodology used to calculate that index. We are not affiliated with any of these sponsors, and have no control over
their actions.
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The Payments on the Notes Are Subject to Postponement Due to Market Disruption Events and Adjustments — The Payment at Maturity and the Valuation Date are subject to
adjustment as described in the product prospectus supplement. For a description of what constitutes a market disruption event as well as the consequences of that market disruption event, see the section below, "Additional Terms Relating to
the Indices" and the section “General Terms of the Notes—Market Disruption Events” in the product prospectus supplement.
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Buffered Enhanced Return Notes
Royal Bank of Canada
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Buffered Enhanced Return Notes
Royal Bank of Canada
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Buffered Enhanced Return Notes
Royal Bank of Canada
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Buffered Enhanced Return Notes
Royal Bank of Canada
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Buffered Enhanced Return Notes
Royal Bank of Canada
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Buffered Enhanced Return Notes
Royal Bank of Canada
|
• |
defining the equity universe;
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• |
determining the market investable equity universe for each market;
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• |
determining market capitalization size segments for each market;
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• |
applying index continuity rules for the MSCI Standard Index;
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• |
creating style segments within each size segment within each market; and
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• |
classifying securities under the Global Industry Classification Standard (the “GICS”).
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• |
Identifying Eligible Equity Securities: the equity universe initially looks at securities listed in any of the countries in the MSCI Global Index Series, which will be classified as either Developed Markets (“DM”)
or Emerging Markets (“EM”). All listed equity securities, including Real Estate Investment Trusts and certain income trusts in Canada, are eligible for inclusion in the equity universe. Conversely, mutual funds, ETFs, equity derivatives, and
most investment trusts, are not eligible for inclusion, are eligible for inclusion in the equity universe. Conversely, mutual funds, ETFs, equity derivatives, and most investment trusts, are not.
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• |
Classifying Eligible Securities into the Appropriate Country: each company and its securities (i.e., share classes) are classified in only one country.
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• |
The security is classified in a country that meets the Foreign Listing Materiality Requirement, and
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• |
The security’s foreign listing is traded on an eligible stock exchange of: a DM country if the security is classified in a DM country, a DM or an EM country if the security is classified in an EM country, or a DM
or an EM or a FM country if the security is classified in a FM country. Securities in that country may not be represented by a foreign listing in the global investable equity universe if a country does not meet the requirement.
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Buffered Enhanced Return Notes
Royal Bank of Canada
|
• |
Equity Universe Minimum Size Requirement: this investability screen is applied at the company level. In order to be included in a market investable equity universe, a
company must have the required minimum full market capitalization.
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• |
Equity Universe Minimum Free Float−Adjusted Market Capitalization Requirement: this investability screen is applied at the individual security level. To be eligible for
inclusion in a market investable equity universe, a security must have a free float−adjusted market capitalization equal to or higher than 50% of the equity universe minimum size requirement.
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• |
DM and EM Minimum Liquidity Requirement: this investability screen is applied at the individual security level. To be eligible for inclusion in a market investable equity
universe, a security must have adequate liquidity. The twelve-month and three-month Annual Traded Value Ratio (“ATVR”), a measure that screens out extreme daily trading volumes and takes into account the free float−adjusted market
capitalization size of securities, together with the three-month frequency of trading are used to measure liquidity. A minimum liquidity level of 20% of three- and twelve-month ATVR and 90% of three-month frequency of trading over the last
four consecutive quarters are required for inclusion of a security in a market investable equity universe of a DM, and a minimum liquidity level of 15% of three- and twelve-month ATVR and 80% of three-month frequency of trading over the last
four consecutive quarters are required for inclusion of a security in a market investable equity universe of an EM.
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• |
Global Minimum Foreign Inclusion Factor Requirement: this investability screen is applied at the individual security level. To be eligible for inclusion in a market
investable equity universe, a security’s Foreign Inclusion Factor (“FIF”) must reach a certain threshold. The FIF of a security is defined as the proportion of shares outstanding that is available for purchase in the public equity markets by
international investors. This proportion accounts for the available free float of and/or the foreign ownership limits applicable to a specific security (or company). In general, a security must have an FIF equal to or larger than 0.15 to be
eligible for inclusion in a market investable equity universe.
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• |
Minimum Length of Trading Requirement: this investability screen is applied at the individual security level. For an initial public offering (“IPO”) to be eligible for
inclusion in a market investable equity universe, the new issue must have started trading at least three months before the implementation of a semi−annual index review (as described below). This requirement is applicable to small new issues
in all markets. Large IPOs are not subject to the minimum length of trading requirement and may be included in a market investable equity universe and the Standard Index outside of a Quarterly or Semi−Annual Index Review.
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• |
Minimum Foreign Room Requirement: this investability screen is applied at the individual security level. For a security that is subject to a foreign ownership limit to be
eligible for inclusion in a market investable equity universe, the proportion of shares still available to foreign investors relative to the maximum allowed (referred to as “foreign room”) must be at least 15%.
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• |
Investable Market Index (Large + Mid + Small);
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• |
Standard Index (Large + Mid);
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• |
Large Cap Index;
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• |
Mid Cap Index; or
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• |
Small Cap Index.
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• |
defining the market coverage target range for each size segment;
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• |
determining the global minimum size range for each size segment;
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• |
determining the market size−segment cutoffs and associated segment number of companies;
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• |
assigning companies to the size segments; and
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Buffered Enhanced Return Notes
Royal Bank of Canada
|
• |
applying final size−segment investability requirements.
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(i) |
Semi−Annual Index Reviews (“SAIRs”) in May and November of the Size Segment and Global Value and Growth Indices which include:
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• |
updating the indices on the basis of a fully refreshed equity universe;
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• |
taking buffer rules into consideration for migration of securities across size and style segments; and
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• |
updating FIFs and Number of Shares (“NOS”).
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(ii) |
Quarterly Index Reviews (“QIRs”) in February and August of the Size Segment Indices aimed at:
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including significant new eligible securities (such as IPOs that were not eligible for earlier inclusion) in the index;
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allowing for significant moves of companies within the Size Segment Indices, using wider buffers than in the SAIR; and
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reflecting the impact of significant market events on FIFs and updating NOS.
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(iii) |
Ongoing Event−Related Changes: changes of this type are generally implemented in the indices as they occur. Significantly large IPOs are included in the indices after the close of the company’s tenth day of
trading.
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Buffered Enhanced Return Notes
Royal Bank of Canada
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Buffered Enhanced Return Notes
Royal Bank of Canada
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Buffered Enhanced Return Notes
Royal Bank of Canada
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Buffered Enhanced Return Notes
Royal Bank of Canada
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a suspension, absence or limitation of trading in index components constituting 20% or more, by weight, of that index;
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• |
a suspension, absence or limitation of trading in futures or options contracts relating to that index on their respective markets;
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• |
any event that disrupts or impairs, as determined by the Calculation Agent, the ability of market participants to (i) effect transactions in, or obtain market values for, index components constituting 20% or more,
by weight, of that index, or (ii) effect transactions in, or obtain market values for, futures or options contracts relating to that index on their respective markets;
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Buffered Enhanced Return Notes
Royal Bank of Canada
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• |
the closure on any day of the primary market for futures or options contracts relating to that index or index components constituting 20% or more, by weight, of that index on a scheduled trading day prior to the
scheduled weekday closing time of that market (without regard to after hours or any other trading outside of the regular trading session hours) unless such earlier closing time is announced by the primary market at least one hour prior to the
earlier of (i) the actual closing time for the regular trading session on such primary market on such scheduled trading day for such primary market and (ii) the submission deadline for orders to be entered into the relevant exchange system
for execution at the close of trading on such scheduled trading day for such primary market;
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• |
any scheduled trading day on which (i) the primary markets for index components constituting 20% or more, by weight, of that index or (ii) the exchanges or quotation systems, if any, on which futures or options
contracts on that index are traded, fails to open for trading during its regular trading session; or
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• |
any other event, if the Calculation Agent determines that the event interferes with our ability or the ability of any of our affiliates to unwind all or a portion of a hedge with respect to the Notes that we or
our affiliates have effected or may effect.
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Buffered Enhanced Return Notes
Royal Bank of Canada
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Buffered Enhanced Return Notes
Royal Bank of Canada
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Buffered Enhanced Return Notes
Royal Bank of Canada
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