Hedging Disruption - Equity Derivatives Provision: Difference between revisions

Does a [[regulator]]’s direction to ditch a hedge mean a {{eqderivprov|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.