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Change in Law - Equity Derivatives Provision: Difference between revisions
Change in Law - Equity Derivatives Provision (view source)
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{{nuts|equity derivatives|12.9(a)(ii)}} | {{nuts|equity derivatives|12.9(a)(ii)}} | ||
==={{eqderivprov|Shares}} versus {{eqderivprov|Hedge Positions}}=== | ==={{eqderivprov|Shares}} versus {{eqderivprov|Hedge Positions}}=== | ||
Common to see references in (x) to “{{eqderivprov|Shares}}” replaced by the slightly wider | 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 Hedgine Party to take reasonable steps to avoid a change of law. This is silly, [[Chicken Licken]] behaviour. Resist it, but [[I'm not going to die in a ditch about it|don’t die in a ditch about it]]. | ||
===Omission of “material increase in costs” limb=== | ===Omission of “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). You may see this expressed as: "Applicable, provided that section {{eqderivprov|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: | The industry has generally moved to omit the “{{eqderivprov|Increased Cost of Hedging}}” aspects of this definition (because it is dealt with there). You may see this expressed as: "Applicable, provided that section {{eqderivprov|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: | ||