Change in Law - Equity Derivatives Provision: Difference between revisions

Change in Law - Equity Derivatives Provision (view source)

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→‎{{eqderivprov|Shares}} versus {{eqderivprov|Hedge Positions}}

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 ==={{eqderivprov|Shares}} versus {{eqderivprov|Hedge Positions}}===
-Common to see references in (x) to “{{eqderivprov|Shares}}” replaced by the slightly wider “{{eqderivprov|Hedge Positions}}”. Not objectionable. Uber pedants may also try to argue that there should be some obligation on the {{eqderivprov|Hedging Party}} to take reasonable steps to avoid a change of law. This is silly, [[Chicken Licken]] behaviour. I mean what are you meant to do? Lobby congress? (Remember “{{eqderivprov|Hedge Positions}}” is wider and more generic than “any particular hedge position that you happen to have on” at the time the law changes. If you can change your hedging strategy, you are not subject to a {{eqderivprov|Change in Law}}. So resist this drafting, but [[I'm not going to die in a ditch about it|don’t die in a ditch about it]].
+Common to see references in (x) to “{{eqderivprov|Shares}}” replaced by the slightly wider “{{eqderivprov|Hedge Positions}}”. Not objectionable.
+Uber pedants may also try to argue that there should be some obligation on the {{eqderivprov|Hedging Party}} to take reasonable steps to avoid a [[Change in law - Equity Derivatives Provision|change in law]]. This is silly, [[Chicken Licken]] behaviour. I mean what are you meant to do? Lobby congress? (Remember “{{eqderivprov|Hedge Positions}}” is wider and more generic than “any particular hedge position that you happen to have on” at the time the law changes. If you can change your hedging strategy, you are not subject to a {{eqderivprov|Change in Law}}. So resist this drafting, but [[I'm not going to die in a ditch about it|don’t die in a ditch about it]].
 ===Omission of “[[Prong Y]]”: The “material increase in costs” limb===
 The industry has generally moved to omit the “{{eqderivprov|Increased Cost of Hedging}}” aspects of this definition (because it is dealt with there).