View source for Template:Gmsla 9 comp

{{gmslacomparisons|93232|44153|}}

Paragraph {{gmslaprov|9}} of the {{gmsla}} is broadly the same in the {{pgmsla}}, only with no reference to failure by the {{pgmslaprov|Lender}} to return {{pgmslaprov|Equivalent}} {{pgmslaprov|Collateral}} — so there is no middle paragraph in the {{pgmsla}} addressing  ''{{{{{1}}}|Lender’s failure to deliver Equivalent Collateral}}'', essentially — all for the sensible reason that, under the {{pgmsla}} construct, the {{pgmslaprov|Lender}} never gets its mitts on the {{pgmslaprov|Collateral}} in the first place — it is locked away from it in a triparty pledge account — so the {{pgmslaprov|Lender}} is hardly in a position to fail to return it if there is a settlement fail — which there should not be ''because'' it is locked away from it in a triparty pledge account. Otherwise, the provision in the {{pgmsla}} works in the same way as the normal GMSLA.

This is because it only really applies to the {{{{{1}}}|Borrower}} on the “borrow” leg, and — assuming the {{{{{1}}}|Borrower}} has not gone ''[[tette in alto]]'', but is merely struggling to source {{gmslaprov|Equivalent}} {{gmslaprov|Securities}} to return because the market’s a bit dickey —  you would not expect the {{{{{1}}}|Lender}} to enforce on the {{{{{1}}}|Collateral}}.

====Comparable master agreements====
=====Repo=====
We are given to understand that neither the {{gmra}}, its American cousin the {{mra}} nor the American [[stock lending]] agreement the {{msla}} have comparable mini-close-out provisions, though it is understood as a matter of good form that where there has been a simple innocent settlement failure and one can safely [[buy in]] — thereby helping oneself — one would never be so vulgar or unsportspersonlike as to actually call an [[Event of Default]]. (In this regard, see the unnecessary fiddlings to definitions of {{isdaprov|Specified Transaction}} that ISDA credit officers might insist on to prevent [[repo]] and [[stock loan]] settlement failures triggering {{isdaprov|DUST}} or, god forbid — and generally God ''does'' forbid it, seeing as generally [[securities financing]] is not {{isdaprov|Specified Indebtedness}} — {{isdaprov|Cross Default}} to a third party altogether).
=====Equity derivatives=====
Fun comparison: the {{eqdefs}} completely botch the equivalent settlement failure terms for equity swaps. What business you have physically settling [[synthetic equity swap]]s is a whole other question of course — so it doesn’t really matter — but for a spot of gratuitous bafflement, look no further than {{eqderivprov|Consequences of Failure to Deliver}} under Section {{eqderivprov|12.9(b)(ii)}} of the {{eqdefs}}.