Loss of Stock Borrow - Equity Derivatives Provision: Difference between revisions

Loss of Stock Borrow - Equity Derivatives Provision (view source)

No change in size , 5 September 2018

no edit summary

82,891

edits

@@ Line 1: / Line 1: @@
-{{fullanat2|eqderiv|12.9(a)(vii)||12.9(b)(iv)|}}
+{{eqderivanat|12.9(a)(vii)}}
+{{eqderivanat|12.9(b)(iv)}}
 {{eqderivprov|Loss of Stock Borrow}} is an {{eqderivprov|Additional Disruption Event}} in the  {{2002equitydefs}}, and is fondly abbreviated, by this commentator at least, to {{eqderivprov|LOSB}}. It pairs nicely with an {{eqderivprov|Increased Cost of Stock Borrow}}, fish or chicken. See also  {{eqderivprov|12.9(b)(vii)}} which deals with the tension between {{eqderivprov|LOSB}} and {{eqderivprov|Hedging Disruption}}.
-{{box|
-{{nuts|Equity Derivatives|12.9(b)(iv)}}}}
+{{nuts|Equity Derivatives|12.9(b)(iv)}}
 '''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}}.