Template:M gen Equity Derivatives 12.9(b): Difference between revisions
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==={{eqderivprov|Consequences of Failure to Deliver}} under Section {{eqderivprov|12.9(b)(ii)}}=== | ==={{eqderivprov|Consequences of Failure to Deliver}} under Section {{eqderivprov|12.9(b)(ii)}}=== | ||
This is for [physical settlement]] only. | This is for [[physical settlement]] only. It is 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’. | ||
==={{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 14:23, 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. It is 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’.
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.