Change in Law - Equity Derivatives Provision

Commentary

Note the industry has generally moved to omit the "Increased Cost of Hedging" aspects of this definition - see for example the 2007 European Master Equity Derivatives Confirmation Agreement to provide the following:

You may also see this expressed as: "Applicable, provided that section 12.9(a)(ii)(Y) of the Equity Definitions does not apply."

The consequences of a Change in Law (or an Insolvency Filing are set out in 12.9(b)(i) as follows: