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Hedge Positions - Equity Derivatives Provision: Difference between revisions
Hedge Positions - Equity Derivatives Provision (view source)
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{{eqderivanat|13.2(b)}} | {{eqderivanat|13.2(b)}} | ||
Would a {{eqderivprov|Hedge Position}} include any [[FX]] transactions required to convert positions and proceeds of hedge disposal into the {{eqderivprov|Settlement Currency}}? You may find assiduous fellows that would find it prudent to clarify. Not this one, however: [[FX]] risk seems to this commentator to be a natural consequence of Section {{eqderivprov|13.2(b)}}, so no such [[Anal paradox|anality]] required. | Would a {{eqderivprov|Hedge Position}} include any [[FX]] transactions required to convert positions and proceeds of hedge disposal into the {{eqderivprov|Settlement Currency}}? You may find assiduous fellows that would find it prudent to clarify. Not this one, however: [[FX]] risk seems to this commentator to be a natural consequence of Section {{eqderivprov|13.2(b)}}, so no such [[Anal paradox|anality]] required. | ||
===Whither the Hedging Party=== | |||
A more careful draftsperson might have mentioned that the Hedging Party might not necessarily be one of the counterparties, but might be an [[affiliate]], and this wording might have more clearly captured that. | |||
A lover of fair, large and liberal interpretations of [[tiresome]] legal agreements might wonder whether it would be much of a stretch to extend reference to the "arrangements" a party makes to include its affiliates and hedging agents of course. Especially where, as they will, they will pass the costs of those hedges on to the direct party. | |||
{{triplecocktail}} | {{triplecocktail}} | ||
{{ref}} | {{ref}} | ||