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| ===Definition===
| | {{eqdmanual|12.9(a)(viii) and 12.9(b)(v)}} |
| {{eqderivsnap|12.9(a)(viii)}} | |
| ===Operative Provision===
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| {{eqderivsnap|12.9(b)(v)}}
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| ====Commentary====
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| '''Summary''': When the Hedging Party notifies an {{eqderivprov|Increased Cost of Stock Borrow}}, specifiying a proposed {{eqderivprov|Price Adjustment}}, the non-Hedging Party has three options:
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| #Accept the {{eqderivprov|Price Adjustment}} and the {{eqderivprov|Transaction}} is amended accordingly;
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| #Make a one-off payment of the determined {{eqderivprov|Price Adjustment}}; or
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| #Terminate the {{eqderivprov|Transaction}} on the second {{eqderivprov|Scheduled Trading Day}}.
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| 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.
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| Compare and Contrast with {{eqderivprov|Loss of Stock Borrow}}, where the 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 Scheduled Trading Days itself, or Hedging Party can terminate. Therefore Increased Cost of Stock Borrow is the "gentler" provision from the Non-Hedging Party's perspective.
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| ====Related Provisions====
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| {{eqderivanatomy}}
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