Template:2002 ISDA Equity Derivatives Definitions 12.9(b)(vi): Difference between revisions
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Amwelladmin (talk | contribs) Created page with ":{{eqderivprov|12.9(b)(vi)}} If "'''{{eqderivprov|Increased Cost of Hedging}}'''" is specified in the related {{eqderivprov|Confirmation}} to be <br>applicable to a {{eqderivp..." |
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:{{eqderivprov|12.9(b)(vi)}} If | :{{eqderivprov|12.9(b)(vi)}} If “'''{{eqderivprov|Increased Cost of Hedging}}'''” is specified in the related {{eqderivprov|Confirmation}} to be <br>applicable to a {{eqderivprov|Transaction}}, then upon the occurrence of such an event the {{eqderivprov|Hedging Party}} will <br>give prompt notice to the {{eqderivprov|Non-Hedging Party}} that such increased costs have been incurred and <br>that a {{eqderivprov|Price Adjustment}} will be made to the {{eqderivprov|Transaction}}. The {{eqderivprov|Non-Hedging Party}} shall, within <br>two {{eqderivprov|Scheduled Trading Days}} of receipt of the notice of {{eqderivprov|Increased Cost of Hedging}} and <br>corresponding {{eqderivprov|Price Adjustment}}, notify the {{eqderivprov|Hedging Party}} that it elects to (A) agree to amend the <br>relevant {{eqderivprov|Transaction}} to take into account the {{eqderivprov|Price Adjustment}}, (B) pay the {{eqderivprov|Hedging Party}} an <br>amount determined by the {{eqderivprov|Calculation Agent}} that corresponds to the {{eqderivprov|Price Adjustment}} or (C) <br>terminate the {{eqderivprov|Transaction}} as of that second {{eqderivprov|Scheduled Trading Day}}. If such notice is not given <br>by the end of that second {{eqderivprov|Scheduled Trading Day}}, then the {{eqderivprov|Hedging Party}} may give notice that it <br>elects to terminate the {{eqderivprov|Transaction}}, specifying the date of such termination, which may be the <br>same day that the notice of termination is effective. If either party elects to terminate the <br>{{eqderivprov|Transaction}}, the {{eqderivprov|Determining Party}} will determine the {{eqderivprov|Cancellation Amount}} payable by one party <br>to the other. <br> | ||
Revision as of 14:23, 19 August 2016
- 12.9(b)(vi) If “Increased Cost of Hedging” is specified in the related Confirmation to be
applicable to a Transaction, then upon the occurrence of such an event the Hedging Party will
give prompt notice to the Non-Hedging Party that such increased costs have been incurred and
that a Price Adjustment will be made to the Transaction. The Non-Hedging Party shall, within
two Scheduled Trading Days of receipt of the notice of Increased Cost of Hedging and
corresponding Price Adjustment, notify the Hedging Party that it elects to (A) agree to amend the
relevant Transaction to take into account the Price Adjustment, (B) pay the Hedging Party an
amount determined by the Calculation Agent that corresponds to the Price Adjustment or (C)
terminate the Transaction as of that second Scheduled Trading Day. If such notice is not given
by the end of that second Scheduled Trading Day, then the Hedging Party may give notice that it
elects to terminate the Transaction, specifying the date of such termination, which may be the
same day that the notice of termination is effective. If either party elects to terminate the
Transaction, the Determining Party will determine the Cancellation Amount payable by one party
to the other.