Change in Law - Equity Derivatives Provision: Difference between revisions

Revision as of 14:38, 26 January 2015

Note the industry has generally moved to omit the "Increased Cost of Hedging" aspects of this definition. You may also see this expressed as: "Applicable, provided that section 12.9(a)(ii)(Y) of the Equity Definitions does not apply." See also, for example the 2007 European Master Equity Derivatives Confirmation Agreement, which provides the following:

@@ Line 1: / Line 1: @@
 {{eqderivsnap|12.9(a)(ii)}}
-====Commentary====
+==Commentary==
-{{triplecocktail}}
+===Omission of "material increase in costs" limb===
-Note the industry has generally moved to omit the "{{eqderivprov|Increased Cost of Hedging}}" aspects of this definition - see for example the [[2007 European Master Equity Derivatives Confirmation Agreement]], which provides the following:
+Note the industry has generally moved to omit the "{{eqderivprov|Increased Cost of Hedging}}" aspects of this definition. You may also see this expressed as: "Applicable, provided that section {{eqderivprov|12.9(a)(ii)(Y)}} of the Equity Definitions does not apply." See also, for example the [[2007 European Master Equity Derivatives Confirmation Agreement]], which provides the following:
 {{eqderivsnap|Amended Change In Law}}
-You may also see this expressed as: "Applicable, provided that section {{eqderivprov|12.9(a)(ii)(Y)}} of the Equity Definitions does not apply."
+===Consequences===
+The consequences of a {{eqderivprov|Change in Law}} (or an {{eqderivprov|Insolvency Filing}} are set out in {{eqderivprov|12.9(b)(i)}}:
-The consequences of a {{eqderivprov|Change in Law}} (or an {{eqderivprov|Insolvency Filing}} are set out in {{eqderivprov|12.9(b)(i)}} as follows:
 {{eqderivsnap|12.9(b)(i)}}
+{{triplecocktail}}
 {{eqderivanatomy}}