Template:M gen Equity Derivatives 12.9(b): Difference between revisions
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=== {{eqderivprov|Consequences of Change in Law or Insolvency Filing}} under Section {{eqderivprov|12.9(b)(i)}} === | === {{eqderivprov|Consequences of Change in Law or Insolvency Filing}} under Section {{eqderivprov|12.9(b)(i)}} === | ||
Your counterparties — or at any rate, their [[legal department|legal departments]] — may enjoy the intellectual challenge of jousting over the precise number of days’ notice one must give before decreeing and acting upon a {{eqderivprov|Change in Law}} or {{eqderivprov|Insolvency Filing}}. The practical reality here is that a sensible [[broker]] will be in touch with affected clients and will manage out of such a position by some kind of consent without reaching for a copy of the agreement, and a ''non''-sensible broker won’t have [[clients]] for very long, but that is not how [[legal eagles]] are conditioned to think. | Your counterparties — or at any rate, their [[legal department|legal departments]] — may enjoy the intellectual challenge of jousting over the precise number of days’ notice one must give before decreeing and acting upon a {{eqderivprov|Change in Law}} or {{eqderivprov|Insolvency Filing}}. The practical reality here is that a sensible [[broker]] will be in touch with affected clients and will manage out of such a position by some kind of consent without reaching for a copy of the agreement, and a ''non''-sensible broker won’t have [[clients]] for very long, but that is not how [[legal eagles]] are conditioned to think. | ||
==={{eqderivprov|Consequences of Failure to Deliver}} under Section {{eqderivprov|12.9(b)(ii)}}=== | |||
This is for [physical settlement]] only. | |||
[[ - Equity Derivatives Provision|A]] beast of a definition, even when nutshelled, but relevant only if [[physical settlement]] is your bag. If you cash settle your [[equity swap|equity swaps]] — and in synthetic prime brokerage, that’s kinda the point, you know — you can keep on truckin’. | |||
On that note: RIGHT HAND TURN, CLYDE. | |||
==={{eqderivprov|Consequences of Hedging Disruption and Loss of Stock Borrow}} under {{eqderivprov|12.9(b)(vii)}}=== | ==={{eqderivprov|Consequences of Hedging Disruption and Loss of Stock Borrow}} under {{eqderivprov|12.9(b)(vii)}}=== | ||
If the same event could be a {{eqderivprov|Hedging Disruption}} ''or'' a {{eqderivprov|Loss of Stock Borrow}}, it will be treated as a {{eqderivprov|Loss of Stock Borrow}}. The remedies for that are marginally less stentorian. | If the same event could be a {{eqderivprov|Hedging Disruption}} ''or'' a {{eqderivprov|Loss of Stock Borrow}}, it will be treated as a {{eqderivprov|Loss of Stock Borrow}}. The remedies for that are marginally less stentorian. | ||
Revision as of 14:22, 13 May 2022
Consequences of Change in Law or Insolvency Filing under Section 12.9(b)(i)
Your counterparties — or at any rate, their legal departments — may enjoy the intellectual challenge of jousting over the precise number of days’ notice one must give before decreeing and acting upon a Change in Law or Insolvency Filing. The practical reality here is that a sensible broker will be in touch with affected clients and will manage out of such a position by some kind of consent without reaching for a copy of the agreement, and a non-sensible broker won’t have clients for very long, but that is not how legal eagles are conditioned to think.
Consequences of Failure to Deliver under Section 12.9(b)(ii)
This is for [physical settlement]] only. A beast of a definition, even when nutshelled, but relevant only if physical settlement is your bag. If you cash settle your equity swaps — and in synthetic prime brokerage, that’s kinda the point, you know — you can keep on truckin’.
On that note: RIGHT HAND TURN, CLYDE.
Consequences of Hedging Disruption and Loss of Stock Borrow under 12.9(b)(vii)
If the same event could be a Hedging Disruption or a Loss of Stock Borrow, it will be treated as a Loss of Stock Borrow. The remedies for that are marginally less stentorian.