Template:Nutshell Equity Derivatives 12.9(b)(v)
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- 12.9(b)(v) If “Increased Cost of Stock Borrow” applies, the Hedging Party may tell the Non-Hedging Party that an Increased Cost of Stock Borrow has happened and that it will make a Price Adjustment to the Transaction.
- Within 2 Scheduled Trading Days of that notice the Non-Hedging Party must:
- (A) amend the Transaction to make the Price Adjustment,
- (B) pay the Hedging Party the Price Adjustment or
- (C) terminate the Transaction as of that second Scheduled Trading Day.
- Within this period, the Non-Hedging Party may lend the Hedging Party, the necessary Hedging Shares at no more than the Initial Stock Loan Rate.
- Absent such an election the Hedging Party may terminate the Transaction. On any termination of the Transaction, the Determining Party will determine the Cancellation Amount.