82,891
edits
Amwelladmin (talk | contribs) No edit summary |
Amwelladmin (talk | contribs) No edit summary |
||
Line 1: | Line 1: | ||
{{ | {{eqderivanat|12.9(a)(viii)}} | ||
{{ | {{eqderivanat|12.9(b)(v)}} | ||
When the {{eqderivprov|Hedging Party}} notifies an {{eqderivprov|Increased Cost of Stock Borrow}}, specifiying a proposed {{eqderivprov|Price Adjustment}}, the non-Hedging Party has three options: | |||
*Accept the {{eqderivprov|Price Adjustment}} and the {{eqderivprov|Transaction}} is amended accordingly; | |||
*Make a one-off payment of the determined {{eqderivprov|Price Adjustment}}; or | |||
*Terminate the {{eqderivprov|Transaction}} on the second {{eqderivprov|Scheduled Trading Day}}. | |||
Only if the {{eqderivprov|Non-Hedging Party}} has failed to give any such election by the end of the second {{eqderivprov|Scheduled Trading Day}} can the {{eqderivprov|Hedging Party}} terminate the {{eqderivprov|Transaction}}. The {{eqderivprov|Non-Hedging Party}} can lend the {{eqderivprov|Hedging Party}} the relevant {{eqderivprov|Shares}} in the intervening period to mitigate its loss. | Only if the {{eqderivprov|Non-Hedging Party}} has failed to give any such election by the end of the second {{eqderivprov|Scheduled Trading Day}} can the {{eqderivprov|Hedging Party}} terminate the {{eqderivprov|Transaction}}. The {{eqderivprov|Non-Hedging Party}} can lend the {{eqderivprov|Hedging Party}} the relevant {{eqderivprov|Shares}} in the intervening period to mitigate its loss. | ||
Compare | Compare with {{eqderivprov|Loss of Stock Borrow}}, where the {{eqderivprov|Non-Hedging Party}} has a bit less flexibility in what it does: it either has to pony up (or procure) a stock borrow within 2 {{eqderivprov|Scheduled Trading Days}} itself, or {{eqderivprov|Hedging Party}} can terminate. Therefore {{eqderivprov|Increased Cost of Stock Borrow}} is the "gentler" provision from the {{eqderivprov|Non-Hedging Party}}’s perspective. | ||
{{seealso}} | |||
*{{eqderivprov|Loss of Stock Borrow}} | *{{eqderivprov|Loss of Stock Borrow}} | ||