Template:M comp disc Equity Derivatives 12.9

Section 12.9. Additional Disruption Events

Section 12.9(a): The actual Additional Disruption Events

12.9(a)(i) Additional Disruption Event

12.9(a)(ii) Change in Law

12.9(a)(iii) Failure to Deliver

12.9(a)(iv) Insolvency Filing

12.9(a)(v) Hedging Disruption

12.9(a)(vi) Increased Cost of Hedging

12.9(a)(vii) Loss of Stock Borrow

12.9(a)(viii) Increased Cost of Stock Borrow

Section 12.9(a): Other definitions relating to Additional Disruption Events

12.9(a)(ix) Hedging Party

12.9(a)(x) Hedging Shares

12.9(a)(xi) Lending Party

12.9(a)(xii) Non-Hedging Party

12.9(a)(xiii) Maximum Stock Loan Rate

12.9(a)(xiv) Initial Stock Loan Rate

12.9(a)(xv) Price Adjustment

12.9(b) Consequences of an Additional Disruption Event

12.9(b)(i) Consequences of Change in Law or Insolvency Filing

12.9(b)(ii) Consequences of Failure to Deliver

12.9(b)(iii) Consequences of Hedging Disruption

12.9(b)(iv) Consequences of Loss of Stock Borrow

12.9(b)(v) Consequences of Increased Cost of Stock Borrow

12.9(b)(vi) Consequences of Increased Cost of Hedging

12.9(b)(vii) Consequences of Hedging Disruption and Loss of Stock Borrow

12.9(b)(viii) Shares provided by the Non-Hedging Party

12.9(b)(ix) Cancellation Amount payable by one party to the other

Section 12.9 of the Extraordinary Events chapter are the Additional Disruption Events. Unlike the other Extraordinary Events, these ones are specific to the equity derivative Transaction itself, as distinct from the underlying Shares or Indexes, or conditions in the wider market — though (needless to say, really) the Additional Disruption Events for the Transaction are often a function of — derivative of, even — such events in the underlying market.