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Template:M gen Equity Derivatives 12.9(b): Difference between revisions
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Template:M gen Equity Derivatives 12.9(b) (view source)
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==={{eqderivprov|Consequences of Failure to Deliver}} under Section {{eqderivprov|12.9(b)(ii)}}=== | ==={{eqderivprov|Consequences of Failure to Deliver}} under Section {{eqderivprov|12.9(b)(ii)}}=== | ||
This is for [[physical settlement]] only. It is a beast of a definition, even when nutshelled, but relevant only if [[physical settlement]] is your bag. If you cash settle your [[equity swap|equity swaps]] — and in [[synthetic prime brokerage]], that’s kinda the point, you know — you can keep on truckin’. | This is for [[physical settlement]] only. It is a beast of a definition, even when nutshelled, but relevant only if [[physical settlement]] is your bag. If you cash settle your [[equity swap|equity swaps]] — and in [[synthetic prime brokerage]], that’s kinda the point, you know — you can keep on truckin’. | ||
==={{eqderivprov|Consequences of }} under Section {{eqderivprov|12.9(b)(iii)}}=== | |||
You may see a rider to this clause along the following lines: | |||
:“Where reasonably practical, the {{eqderivprov|Hedging Party}} must elect to terminate only the part of the {{isdaprov|Transaction}} with the {{eqderivprov|Number of Shares}} corresponding to the {{eqderivprov|Hedge Position}} that the {{eqderivprov|Hedging Disruption}} relates to, and the {{eqderivprov|Cancellation Amount}} is then determined over only the terminated part of the {{eqderivprov|Transaction}}”. | |||
==={{eqderivprov|Consequences of Loss of Stock Borrow}} under Section {{eqderivprov|12.9(b)(iv)}}=== | |||
See our article on {{eqderivprov|Loss of Stock Borrow}} which discussed the event, and its consequences in a single, joined up, safe space. | |||
==={{eqderivprov|Consequences of Increased Cost of Stock Borrow}} under Section {{eqderivprov|12.9(b)(v)}}=== | |||
See our article on {{eqderivprov|Increased Cost of Stock Borrow}} which discussed the event, and its consequences holistically, like. | |||
==={{eqderivprov|Consequences of Increased cost of Hedging}} under Section {{eqderivprov|12.9(b)(vi)}}=== | |||
==={{eqderivprov|Consequences of Hedging Disruption and Loss of Stock Borrow}} under {{eqderivprov|12.9(b)(vii)}}=== | ==={{eqderivprov|Consequences of Hedging Disruption and Loss of Stock Borrow}} under {{eqderivprov|12.9(b)(vii)}}=== | ||
If the same event could be a {{eqderivprov|Hedging Disruption}} ''or'' a {{eqderivprov|Loss of Stock Borrow}}, it will be treated as a {{eqderivprov|Loss of Stock Borrow}}. The remedies for that are marginally less stentorian. | If the same event could be a {{eqderivprov|Hedging Disruption}} ''or'' a {{eqderivprov|Loss of Stock Borrow}}, it will be treated as a {{eqderivprov|Loss of Stock Borrow}}. The remedies for that are marginally less stentorian. | ||