82,911
edits
Synthetic prime brokerage: Difference between revisions
no edit summary
Amwelladmin (talk | contribs) No edit summary |
Amwelladmin (talk | contribs) No edit summary |
||
| Line 27: | Line 27: | ||
A client can close out its [[synthetic equity swap]] in exactly the same way: it obtains a firm price from an executing broker, instruct the closure of the swap at that price, and indicate that the [[PB]] can sell its hedge to the [[executing broker]]. | A client can close out its [[synthetic equity swap]] in exactly the same way: it obtains a firm price from an executing broker, instruct the closure of the swap at that price, and indicate that the [[PB]] can sell its hedge to the [[executing broker]]. | ||
===Common, [[tedious]], negotiation points of dispute when negotiating a [[synthetic equity swap]] [[master confirmation]] === | |||
*“'''I want to be [[co-calculation agent]]'''”, “'''I want a right to dispute your calculations'''” and “'''I want to be a {{eqderivprov|Determining Party}}'''”: See “I want to be [[co-calculation agent]]” and Section {{eqderivprov|12.7(c)}}. | |||
*Why should you be able to pass on taxes, extraordinary hedge costs and other losses as a result of counterparty defaults on your hedge position? See {{eqderivprov|Hedge Position Adjustments}}. | |||
*'''You can change [[initial margin]] whenever you like? What’s ''that'' all about?''' | |||
*'''What do you mean you want a thirty-day termination right?''' | |||
*'''[[Hypothetical broker-dealer]]. What’s ''that'' all about?''' (In brief: See Section [[871(m)]]). | |||
*'''Hang on. An [[indemnity]] for your tax risk? Are you serious?''' | |||
{{sa}} | {{sa}} | ||
*[[Archegos]] | *[[Archegos]] | ||
*[[871(m)]] of the [[Internal Revenue Code of 1986]] | *[[871(m)]] of the [[Internal Revenue Code of 1986]] | ||