Nationalization, Insolvency and Delisting - Equity Derivatives Provision: Difference between revisions

Upon the occurrence of these {{eqderivprov|Extraordinary Events}} ({{eqderivprov|Nationalization}}, {{eqderivprov|Insolvency}} and {{eqderivprov|Delisting}}) the parties may elect to terminate (if they choose {{eqderivprov|Negotiated Close-out}}), or the transaction will automatically terminate (if {{eqderivprov|Cancellation and Payment (Extraordinary Events)}} or {{eqderivprov|Partial Cancellation and Payment (Extraordinary Events)}} are selected).

Note that a {{eqderivprov|Delisting}} covers full cessation of trading but not a suspension of trading, even if indefinite. But in that case a {{eqderivprov|Hedging Disruption}} or - at a pinch - {{eqderivprov|Increased Cost of Hedging}} ought to get you home.