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{{eqderivanat|12.9(a)(v)}} | {{eqderivanat|12.9(a)(v)}} | ||
===Regulator informal action=== | |||
Does a [[regulator]]’s direction to ditch a hedge mean a [[hedging party]] is “unable to commercially reasonably maintain” its [[hedge]]? As long as there is no regulatory-approved alternative means of hedging (you know, but [[futures]], for example), then yes – the apprehension of sanction by the regulator (be it a monetary penalty, adverse publicity or the regulator barring you from operating in its market or even a dim view being taken) - just the general aspiration to maintain good relations with a body having power to regulate your operations — provided it is sincere — is a [[reasonable]] commercial consideration which would prevent you from maintaining that hedge. | |||
===Why the “why should I pay your hedging costs? I have no control over them” argument is bogus=== | ===Why the “why should I pay your hedging costs? I have no control over them” argument is bogus=== | ||
Because [[synthetic PB]] is just cash brokerage done with derivatives and you would wear them in a cash trade, is why. | Because [[synthetic PB]] is just cash brokerage done with derivatives and you would wear them in a cash trade, is why. |