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Change in Law - Commodity Definitions Provision: Difference between revisions
Change in Law - Commodity Definitions Provision (view source)
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Amwelladmin (talk | contribs) (Created page with "On the topic of Commodities Index hedging disruption – nuanced because of the presence of regulator- or exchange-imposed position limits – I found the below language in a ...") |
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it is only a hedging disruption if the provision allows it to “be within the sole and absolute discretion of the Hedging Party to determine which of the relevant assets or transactions are counted towards such limit” (i.e. the option delta of any given trade is below the position limit) | it is only a hedging disruption if the provision allows it to “be within the sole and absolute discretion of the Hedging Party to determine which of the relevant assets or transactions are counted towards such limit” (i.e. the option delta of any given trade is below the position limit) | ||
it may be an increased cost of hedging, because there are ways of hedging the risk – through derivatives which therefore using up someone else’s position limits, and that cost can fairly be attributed pro-rata across the whole book. | it may be an increased cost of hedging, because there are ways of hedging the risk – through derivatives which therefore using up someone else’s position limits, and that cost can fairly be attributed pro-rata across the whole book. | ||
====See also=== | |||
*{{eqderivprov|Triple cocktail}} - Equities | |||
*{{commodprov|Triple cocktail}} - Commodities | |||
{{commodanatomy}} | |||