Template:M gen Equity Derivatives 12.9(b): Difference between revisions
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{{eqderivprov|12.9(b)(vii)}} | === {{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. | |||
===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. | |||
Revision as of 14:18, 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 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.