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Template:M summ Equity Derivatives 12.9(a)(viii): Difference between revisions
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Template:M summ Equity Derivatives 12.9(a)(viii) (view source)
Revision as of 08:40, 4 May 2021
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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: | [[12.9(a)(viii) - Equity Derivatives Provision|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; | *Accept the {{eqderivprov|Price Adjustment}} and the {{eqderivprov|Transaction}} is amended accordingly; | ||
*Make a one-off payment of the determined {{eqderivprov|Price Adjustment}}; or | *Make a one-off payment of the determined {{eqderivprov|Price Adjustment}}; or | ||
*Terminate the {{eqderivprov|Transaction}} on the second {{eqderivprov|Scheduled Trading Day}}. | *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. | ||