Loss of Stock Borrow - Equity Derivatives Provision: Difference between revisions

Replaced content with "{{manual|DEQ|2002|12.9(a)(vii)-(iv)|Section||medium}}"
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{{eqderivanat|12.9(a)(vii)}}{{eqderivanat|12.9(b)(iv)}}{{eqderivprov|Loss of Stock Borrow}} is an {{eqderivprov|Additional Disruption Event}} in the  {{2002equitydefs}}, and is fondly abbreviated, by this commentator at least, to {{eqderivprov|LOSB}}. It pairs nicely with an {{eqderivprov|Increased Cost of Stock Borrow}}, fish or chicken. See also  {{eqderivprov|12.9(b)(vii)}} which deals with the tension between {{eqderivprov|LOSB}} and {{eqderivprov|Hedging Disruption}}.
{{manual|DEQ|2002|12.9(a)(vii)-(iv)|Section||medium}}
 
*Where the {{eqderivprov|Hedging Party}} can’t locate a stock borrow, the {{eqderivprov|Non-Hedging Party}} has the option to source one that is struck at less than the {{eqderivprov|Maximum Stock Loan Rate}} within two {{eqderivprov|Scheduled Trading Days}}, failing which the {{eqderivprov|Hedging Party}} can terminate the {{eqderivprov|Transaction}}.
*Where {{eqderivprov|LOSB}} and {{eqderivprov|Hedging Disruption}} both apply and the same event could qualify as either, it will be treated as a {{eqderivprov|LOSB}} (which has milder consequences for the affected party).
{{LOSD under synthetic pb}}
{{comparison between LOSB and ICOSB}}
 
{{sa}}
*{{eqderivprov|Triple cocktail}}