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[[11.4 - GMSLA Provision|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. | [[11.4 - Pledge GMSLA Provision|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 {{ | If the {{pgmslaprov|Non-Defaulting Party}} has actually sold securities {{pgmslaprov|equivalent}} to those it lent, in can treat the price it got as the {{pgmslaprov|Default Market Value}}. If it hasn’t, it must get two or more reference [[market maker]] [[quotation]]s and average those. | ||
{{ | Tricks to watch out for, especially in illiquid stocks, is that the {{pgmslaprov|Non-Defaulting Party}} is not somehow influencing the price at which that innocent third party might transact (by agreeing to enter an offsetting transaction at the same time). That would be fraudulent, of course. |