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Template:M summ Equity Derivatives 12.9(b): Difference between revisions
Template:M summ Equity Derivatives 12.9(b) (view source)
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*'''{{eqderivprov|Increased Cost of Hedging}}''': {{eqderivprov|Hedging Party}} can present the other guy with a proposed {{eqderivprov|Price Adjustment}}. Other guy, within 2 {{eqderivprov|Scheduled Trading Day}}s, either accepts the {{eqderivprov|Price Adjustment}} in an amended trade, pays the [[PV]] of the {{eqderivprov|Price Adjustment}} in full, or the Hedging Party can terminate the trade on the second {{eqderivprov|Scheduled Trading Day}}, at the {{eqderivprov|Cancellation Amount}}. | *'''{{eqderivprov|Increased Cost of Hedging}}''': {{eqderivprov|Hedging Party}} can present the other guy with a proposed {{eqderivprov|Price Adjustment}}. Other guy, within 2 {{eqderivprov|Scheduled Trading Day}}s, either accepts the {{eqderivprov|Price Adjustment}} in an amended trade, pays the [[PV]] of the {{eqderivprov|Price Adjustment}} in full, or the Hedging Party can terminate the trade on the second {{eqderivprov|Scheduled Trading Day}}, at the {{eqderivprov|Cancellation Amount}}. | ||
Okay, okay, I hear you — [[LOSB - Equity Derivatives Provision|LOSB]] and {{eqderivprov|ICOSB}} are important too. For those: | |||
*'''{{eqderivprov|Loss of Stock Borrow}}''': {{eqderivprov|Hedging Party}} gives 2 {{eqderivprov|Scheduled Trading Day}}’s notice of the {{eqderivprov|LOSB}}. Other guy can either lend the shares itself at the {{eqderivprov|Maximum Stock Loan Rate}} or lower, or if it doesn’t the {{eqderivprov|Hedging Party}} can terminate the trade at the {{eqderivprov|Cancellation Amount}}. | *'''{{eqderivprov|Loss of Stock Borrow}}''': {{eqderivprov|Hedging Party}} gives 2 {{eqderivprov|Scheduled Trading Day}}’s notice of the {{eqderivprov|LOSB}}. Other guy can either lend the shares itself at the {{eqderivprov|Maximum Stock Loan Rate}} or lower, or if it doesn’t the {{eqderivprov|Hedging Party}} can terminate the trade at the {{eqderivprov|Cancellation Amount}}. | ||
*'''{{eqderivprov|Increased Cost of Stock Borrow}}''': {{eqderivprov|Hedging Party}} can present the other guy with a proposed {{eqderivprov|Price Adjustment}}. Other guy, within 2 {{eqderivprov|Scheduled Trading Day}}s, either accepts the {{eqderivprov|Price Adjustment}} in an amended trade, pays the [[PV]] of the {{eqderivprov|Price Adjustment}} in full, or lend the {{eqderivprov|Hedging Party}} the necessary {{eqderivprov|Shares}}, Failing this, the {{eqderivprov|Hedging Party}} can terminate the trade on the second {{eqderivprov|Scheduled Trading Day}}, at the {{eqderivprov|Cancellation Amount}}. | *'''{{eqderivprov|Increased Cost of Stock Borrow}}''': {{eqderivprov|Hedging Party}} can present the other guy with a proposed {{eqderivprov|Price Adjustment}}. Other guy, within 2 {{eqderivprov|Scheduled Trading Day}}s, either accepts the {{eqderivprov|Price Adjustment}} in an amended trade, pays the [[PV]] of the {{eqderivprov|Price Adjustment}} in full, or lend the {{eqderivprov|Hedging Party}} the necessary {{eqderivprov|Shares}}, Failing this, the {{eqderivprov|Hedging Party}} can terminate the trade on the second {{eqderivprov|Scheduled Trading Day}}, at the {{eqderivprov|Cancellation Amount}}. | ||
{{eqderivprov|Insolvency Filing}} and {{eqderivprov|Failure to Deliver}} ... well — are they even ''applied'' in your confirm? | {{eqderivprov|Insolvency Filing}} and {{eqderivprov|Failure to Deliver}} ... well — are they even ''applied'' in your confirm? | ||