Change in Law - Equity Derivatives Provision

Commentary

Omission of "material increase in costs" limb

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:

Consequences

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