82,891
edits
Increased Cost of Stock Borrow - Equity Derivatives Provision: Difference between revisions
Jump to navigation
Jump to search
Increased Cost of Stock Borrow - Equity Derivatives Provision (view source)
Revision as of 14:20, 19 June 2014
, 19 June 2014→Commentary
Amwelladmin (talk | contribs) |
Amwelladmin (talk | contribs) |
||
| Line 10: | Line 10: | ||
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. | ||
Compare and Contrast with {{eqderivprov|Loss of Stock Borrow}}, where the Non-Hedging Party has a bit less flexibility in what it does | Compare and Contrast 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. | ||
====Related Provisions==== | ====Related Provisions==== | ||