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{{eqderivsnap|12.9(a)(vii)}} | {{eqderivsnap|12.9(a)(vii)}} | ||
====Commentary==== | ====Commentary==== | ||
Compare and contrast with {{eqderivprov|Increased Cost of Stock Borrow}}. | Compare and contrast with {{eqderivprov|Increased Cost of Stock Borrow}}. There is a logical handoff and interaction between the two. | ||
*If the cost of a stock borrow exceeds the {{gmslaprov|Maximum Stock Loan Rate}} it is deemed to be (as good as) impossible to borrow stock, so it is treated as a {{gmslaprov|Loss of Stock Borrow}}, not merely an {{gmslaprov|Increased Cost of Stock Borrow}}. If a counterparty wants to apply Increased Cost of Stock Borrow whatever the cost of an available bid, the answer is to disapply {{gmslaprov|Maximum Stock Loan Rate}} altogether. This means that ''any'' possible stock borrow rate, however astronomical, comes under {{gmslaprov|Increased Cost of Stock Borrow}}, and {{gmslaprov|Loss of Stock Borrow}} (which is slightly more onerous a termination right) only applies where there are no offers in the market at all. | |||
====Related Provisions==== | ====Related Provisions==== |