Section 871(m) amendment - ISDA Provision: Difference between revisions

[[There’s no bright line test]], obviously.  

Since [[871(m)]] means that {{tag|WHT}} is now applied on [[high-delta equity derivative]]s in the same way it applies to physical cash trades, the [[recharacterisation]] risk is surely less fraught now, isn’t it? do we really care whether the counterparty controls the hedge?  Can we therefore get rid of that tiresome “[[hypothetical broker-dealer]]” language, which so mightily confuses many counterparties, and just reference the actual hedge liquidation price as the closing price of the derivative?