Template:Nutshell Equity Derivatives 12.9(b)(v): Difference between revisions

{{eqderivprov|12.9(b)(v)}} If "'''{{eqderivprov|Increased Cost of Stock Borrow}}'''" applies, the {{eqderivprov|Hedging Party}} may tell the {{eqderivprov|Non-Hedging Party}} that an {{eqderivprov|Increased Cost of Stock Borrow}} has  happened and that it will make a {{eqderivprov|Price Adjustment}} to the {{eqderivprov|Transaction}}.  

 

Within 2 {{eqderivprov|Scheduled Trading Days}} of that notice the {{eqderivprov|Non-Hedging Party}} must:

:(A) amend the {{eqderivprov|Transaction}} to make the {{eqderivprov|Price Adjustment}},  

:(B) pay the {{eqderivprov|Hedging Party}} the {{eqderivprov|Price Adjustment}} or  

:(C) terminate the {{eqderivprov|Transaction}} as of that second {{eqderivprov|Scheduled Trading Day}}.  

 

Within this period, the {{eqderivprov|Non-Hedging Party}} may lend or procure a loan to the Hedging Party, of an amount of {{eqderivprov|Shares}} equal to the {{eqderivprov|Hedging Shares}} at or less than the {{eqderivprov|Initial Stock Loan Rate}} subject to the conditions below.

 

If the {{eqderivprov|Non-Hedging Party}} doesn't make an election in that period the {{eqderivprov|Hedging Party}} may terminate the {{eqderivprov|Transaction}}. If either party terminates the {{eqderivprov|Transaction}}, the {{eqderivprov|Determining Party}} will determine the {{eqderivprov|Cancellation Amount}}. <br />