Template:2002 ISDA Equity Derivatives Definitions 13.2(a): Difference between revisions
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{{eqderivprov|13.2(a)}} If “'''{{eqderivprov|Agreements and Acknowledgments Regarding Hedging Activities}}''' | {{eqderivprov|13.2(a)}} If “'''{{eqderivprov|Agreements and Acknowledgments Regarding Hedging Activities}}'''” is specified as <br>applicable in the related {{eqderivprov|Confirmation}}, then unless agreed to the contrary expressly and in writing in the <br>related {{eqderivprov|Confirmation}} for a {{eqderivprov|Transaction}} and notwithstanding any communication that each party (and/or <br>its {{eqderivprov|Affiliates}}) may have had with the other party, each party to a {{eqderivprov|Transaction}} agrees and acknowledges <br>that (i) when entering into, or continuing to maintain, such {{eqderivprov|Transaction}}, neither party is relying on (A) <br>the manner or method in which the other party or any of its {{eqderivprov|Affiliates}} may establish, maintain, adjust or <br>unwind its {{eqderivprov|Hedge Positions}}, (B) any communication, whether written or oral, between the parties or any <br>of their respective {{eqderivprov|Affiliates}} with respect to any {{eqderivprov|Hedging Activities}} of the other party or any of its <br>{{eqderivprov|Affiliates}}, or (C) any representation, warranty or statement being made by such party or any of its <br>{{eqderivprov|Affiliates}} as to whether, when, how or in what manner or method such party or any of its {{eqderivprov|Affiliates}} may <br>engage in any {{eqderivprov|Hedging Activities}} and that (ii) (A) each party and its {{eqderivprov|Affiliates}} may, but are not obliged <br>to, hedge any {{eqderivprov|Transaction}} on a dynamic, static or portfolio basis, by holding a corresponding position in <br>the securities or indices referenced by or underlying such {{eqderivprov|Transaction}} or in any other securities or indices <br>or by entering into any {{eqderivprov|Hedge Position}}; (B) any {{eqderivprov|Hedge Position}} established by either party or any of its <br>{{eqderivprov|Affiliates}} is a proprietary trading position and activity of such party or such {{eqderivprov|Affiliate}}; (C) each party or <br>such {{eqderivprov|Affiliate}} is not holding the {{eqderivprov|Hedge Positions}} or engaging in the {{eqderivprov|Hedging Activities}} on behalf or for <br>the account of or as agent or fiduciary for the other party, and the other party will not have any direct <br>economic or other interest in, or beneficial ownership of, the {{eqderivprov|Hedge Positions}} or {{eqderivprov|Hedging Activities}}; and <br>(D) the decision to engage in {{eqderivprov|Hedging Activities}} is in the sole discretion of each party, and each party <br>and its {{eqderivprov|Affiliates}} may commence or, once commenced, suspend or cease the {{eqderivprov|Hedging Activities}} at any <br>time as it may solely determine. <br> | ||
Revision as of 18:06, 16 September 2016
13.2(a) If “Agreements and Acknowledgments Regarding Hedging Activities” is specified as
applicable in the related Confirmation, then unless agreed to the contrary expressly and in writing in the
related Confirmation for a Transaction and notwithstanding any communication that each party (and/or
its Affiliates) may have had with the other party, each party to a Transaction agrees and acknowledges
that (i) when entering into, or continuing to maintain, such Transaction, neither party is relying on (A)
the manner or method in which the other party or any of its Affiliates may establish, maintain, adjust or
unwind its Hedge Positions, (B) any communication, whether written or oral, between the parties or any
of their respective Affiliates with respect to any Hedging Activities of the other party or any of its
Affiliates, or (C) any representation, warranty or statement being made by such party or any of its
Affiliates as to whether, when, how or in what manner or method such party or any of its Affiliates may
engage in any Hedging Activities and that (ii) (A) each party and its Affiliates may, but are not obliged
to, hedge any Transaction on a dynamic, static or portfolio basis, by holding a corresponding position in
the securities or indices referenced by or underlying such Transaction or in any other securities or indices
or by entering into any Hedge Position; (B) any Hedge Position established by either party or any of its
Affiliates is a proprietary trading position and activity of such party or such Affiliate; (C) each party or
such Affiliate is not holding the Hedge Positions or engaging in the Hedging Activities on behalf or for
the account of or as agent or fiduciary for the other party, and the other party will not have any direct
economic or other interest in, or beneficial ownership of, the Hedge Positions or Hedging Activities; and
(D) the decision to engage in Hedging Activities is in the sole discretion of each party, and each party
and its Affiliates may commence or, once commenced, suspend or cease the Hedging Activities at any
time as it may solely determine.