Determination of Default Market Value - GMSLA Provision: Difference between revisions
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{{fullanatopen|gmsla|'''{{Nutshell}}''':<br>{{Nutshell GMSLA 11.4}}<br>'''Full text''':<br>{{2010 GMSLA 11.4}}}} | {{fullanatopen|gmsla|'''{{Nutshell}}''':<br>{{Nutshell GMSLA 11.4}}<br>'''Full text''':<br>{{2010 GMSLA 11.4}}}} | ||
{{seealso}} | |||
*{{gmslaprov|11.2}} which is the foundation stone of the close-out procedure. | |||
*{{gmslaprov|11.4}}, {{gmslaprov|11.5}} and {{gmslaprov|11.6}} of the {{gmsla}} which fully detail the {{tag|close-out}} procedure. | |||
How you value a [[mini close-out]] where a party can't redeliver a stock (because it's been suspended or something). It boils down to how you value either leg of the trade. | How you value a [[mini close-out]] where a party can't redeliver a stock (because it's been suspended or something). It boils down to how you value either leg of the trade. | ||
If the {{gmslaprov|Non-Defaulting Party}} has actually sold securities {{gmslaprov|equivalent}} to those it lent, in can treat the price it got as the {{gmslaprov|Default Market Value}}. If it hasn’t, it must get two or more reference [[market maker]] [[quotation]]s and average those. | If the {{gmslaprov|Non-Defaulting Party}} has actually sold securities {{gmslaprov|equivalent}} to those it lent, in can treat the price it got as the {{gmslaprov|Default Market Value}}. If it hasn’t, it must get two or more reference [[market maker]] [[quotation]]s and average those. | ||
{{buy-in}} | {{buy-in}} |
Revision as of 16:58, 13 July 2017
GMSLA Anatomy™
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See also
- 11.2 which is the foundation stone of the close-out procedure.
- 11.4, 11.5 and 11.6 of the 2010 GMSLA which fully detail the close-out procedure.
How you value a mini close-out where a party can't redeliver a stock (because it's been suspended or something). It boils down to how you value either leg of the trade. If the Non-Defaulting Party has actually sold securities equivalent to those it lent, in can treat the price it got as the Default Market Value. If it hasn’t, it must get two or more reference market maker quotations and average those.