Change in Law - Equity Derivatives Provision: Difference between revisions

From The Jolly Contrarian
Jump to navigation Jump to search
No edit summary
Line 1: Line 1:
{{nuts|equity derivatives|12.9(a)(ii)}}
{{eqderivsnap|12.9(a)(ii)}}
{{eqderivsnap|12.9(a)(ii)}}
==Commentary==
==Commentary==

Revision as of 14:19, 15 December 2015


12.9(a)(ii) in a Nutshell (equity derivatives edition)

12.9(a)(ii)Change in Law” means either party determines that, due to a change in law or regulation:
(X) it becomes illegal to buy, sell or hold underlying Shares or;
(Y) it becomes materially more expensive to perform the Transaction.

view template


Template:Eqderivsnap

Commentary

Omission of "material increase in costs" limb

Rhe industry has generally moved to omit the "Increased Cost of Hedging" aspects of this definition (because it is dealt with there). You may 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:

Template:Eqderivsnap

Consequences

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

Template:Triplecocktail Template:Eqderivanatomy