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Short Sale Agreement
1. Parties: Identification of the seller and buyer, including full legal names, registration numbers, and addresses
2. Background: Context of the transaction, including identification of the securities to be sold short
3. Definitions: Key terms used throughout the agreement, including technical financial terms specific to short selling
4. Subject Matter: Details of the securities being sold short, including quantity, type, and issuer
5. Execution and Settlement: Terms for executing the short sale, including timing, delivery mechanisms, and settlement procedures
6. Margin Requirements: Specifications for initial and maintenance margin requirements
7. Borrowing Arrangements: Terms for borrowing the securities to be sold short, including lending fees and recall provisions
8. Representations and Warranties: Standard declarations by both parties regarding their capacity, authority, and compliance with regulations
9. Risk Disclosure: Acknowledgment of risks associated with short selling
10. Fees and Costs: All applicable fees, including borrowing costs, transaction fees, and any other charges
11. Events of Default: Circumstances constituting default and corresponding remedies
12. Governing Law and Jurisdiction: Specification of Danish law as governing law and jurisdiction for disputes
1. Buy-in Procedures: Optional section detailing procedures when securities need to be bought back to cover the short position, used when specific buy-in procedures are required
2. Reporting Requirements: Details of any reporting obligations to regulators or other parties, included when dealing with regulated entities or reportable positions
3. Tax Provisions: Specific tax-related provisions and responsibilities, included when tax implications require specific attention
4. Intermediary Provisions: Terms relating to any intermediary or broker involvement, included when third-party facilitators are part of the transaction
5. Cross-Border Provisions: Additional terms for cross-border transactions, included when parties are from different jurisdictions
1. Schedule 1 - Securities Description: Detailed description of the securities being sold short, including ISIN numbers and other identifying information
2. Schedule 2 - Pricing Mechanism: Detailed methodology for determining the sale price and any adjustments
3. Schedule 3 - Margin Calculations: Specific formulas and procedures for calculating and maintaining margin requirements
4. Appendix A - Standard Settlement Instructions: Detailed settlement and payment instructions for both parties
5. Appendix B - Required Notices: Forms and templates for various notices required under the agreement
Authors
Applicable Law
Borrowing Fee
Business Day
Buy-in Notice
Close-out
Collateral
Default Event
Exchange
Initial Margin
Lending Fee
Maintenance Margin
Margin Call
Market Value
Recall Notice
Reference Price
Securities
Settlement Date
Short Position
Trading Day
Transaction
Transfer
Borrowed Securities
Material Adverse Change
EU Short Selling Regulation
Regulatory Requirements
Prime Broker
Settlement Instructions
Clearing System
Trading Venue
Danish Business Day
Credit Support
Governing Law
Force Majeure Event
Interest Rate
Losses
Market Disruption Event
Termination Date
Background
Definitions
Subject Matter
Securities Borrowing
Margin Requirements
Settlement
Fees and Charges
Representations and Warranties
Risk Disclosure
Default
Termination
Buy-in Rights
Payment Terms
Regulatory Compliance
Market Disruption
Force Majeure
Notices
Confidentiality
Assignment
Amendments
Severability
Entire Agreement
Governing Law
Jurisdiction
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