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Loss of Stock Borrow - Equity Derivatives Provision: Difference between revisions
Loss of Stock Borrow - Equity Derivatives Provision (view source)
Revision as of 13:16, 7 December 2015
, 7 December 2015→Commentary
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{{eqderivsnap|12.9(b)(vii)}} | {{eqderivsnap|12.9(b)(vii)}} | ||
{{nuts|GMSLA|12.9(b)(iv)}} | |||
====Commentary==== | ====Commentary==== | ||
'''Summary''': 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 hbe treated as a {{eqderivprov|LOSB}} (which has milder consequences for the affected party). | '''Summary''': 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 hbe treated as a {{eqderivprov|LOSB}} (which has milder consequences for the affected party). | ||