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

Increased Cost of Stock Borrow - Equity Derivatives Provision (view source)

957 bytes removed , 4 May 2021

Replaced content with "{{manual|DEQ|2002|12.9(a)(viii)|Section||medium}}"

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-{{eqderivanat|12.9(a)(viii)}}{{eqderivanat|12.9(b)(v)}}When the {{eqderivprov|Hedging Party}} notifies an {{eqderivprov|Increased Cost of Stock Borrow}}, specifiying a proposed {{eqderivprov|Price Adjustment}}, the non-Hedging Party has three options:
+{{manual|DEQ|2002|12.9(a)(viii)|Section||medium}}
-*Accept the {{eqderivprov|Price Adjustment}} and the {{eqderivprov|Transaction}} is amended accordingly;
-*Make a one-off payment of the determined {{eqderivprov|Price Adjustment}}; or
-*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.
-{{Comparison between LOSB and ICOSB}}
-{{sa}}
-*{{eqderivprov|Loss of Stock Borrow}}