Increased Cost of Stock Borrow - Equity Derivatives Provision: Difference between revisions

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*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.
 
{{Comparison between LOSB and ICOSB}}
Compare with {{eqderivprov|Loss of Stock Borrow}}, where the {{eqderivprov|Non-Hedging Party}} has a bit less flexibility in what it does: it either has to pony up (or procure) a stock borrow within 2 {{eqderivprov|Scheduled Trading Days}} itself, or {{eqderivprov|Hedging Party}} can terminate. Therefore {{eqderivprov|Increased Cost of Stock Borrow}} is the "gentler" provision from the {{eqderivprov|Non-Hedging Party}}’s perspective.
{{seealso}}
{{seealso}}
*{{eqderivprov|Loss of Stock Borrow}}
*{{eqderivprov|Loss of Stock Borrow}}