Template:Nutshell GMSLA 11.4: Difference between revisions

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:{{gmslaprov|11.4}} '''Transactions and quotes''': If, between the {{gmslaprov|Termination Date}} and the {{gmslaprov|Default Valuation Time}}: <br>
{{gmslaprov|11.4}} '''Transactions and quotes''': If, between the {{gmslaprov|Termination Date}} and the {{gmslaprov|Default Valuation Time}}: <br>
::(a) '''Actual sale or purchase''': the {{gmslaprov|Non-Defaulting Party}} has bought or sold securities {{gmslaprov|equivalent}} to those it owes or is owed by the {{gmslaprov|Defaulting Party}} it may treat the {{gmslaprov|Default Market Value}} as the net sale proceeds or aggregate purchase cost of the relevant securities. Were the securities sold or purchased are not in identical in amount to the {{gmslaprov|Equivalent}} {{gmslaprov|Securities}}, {{gmslaprov|Non-Defaulting Party}} may [[in good faith]] pro rate those values to determine the necessary {{gmslaprov|Default Market Value}}. <br>
:(a) '''Actual sale or purchase''': the {{gmslaprov|Non-Defaulting Party}} has sold securities {{gmslaprov|equivalent}} to those it owes the {{gmslaprov|Defaulting Party}} or [[Buy-In - GMSLA Provision|bought in]] securities {{gmslaprov|equivalent}} to those the {{gmslaprov|Defaulting Party}} owes it, the {{gmslaprov|Non-Defaulting Party}} may treat the {{gmslaprov|Default Market Value}} as the net proceeds that sale or purchase. Where it  sells or {{gmslaprov|Buys In}} a different amount of {{gmslaprov|Equivalent}} {{gmslaprov|Securities}}, {{gmslaprov|Non-Defaulting Party}} may [[in good faith]] pro rate those values to determine the {{gmslaprov|Default Market Value}}. <br>
::(b) '''Market quotes''': the {{gmslaprov|Non-Defaulting Party}}has received [[offer]] quotations for securities it is owed by the {{gmslaprov|Defaulting Party}}; or [[bid]] quotations for securities it owes the {{gmslaprov|Defaulting Party}} from at least two regular participants in the {{gmslaprov|Appropriate Market}} in what it determines to be a commercially reasonable size, it may treat as the {{gmslaprov|Default Market Value}} the arithmetic mean of the quoted prices as reasonably adjusted to account for for accrued but unpaid interest and {{gmslaprov|Transaction Costs}}. <br>
:(b) '''Market quotes''': the {{gmslaprov|Non-Defaulting Party}} has received [[offer]] quotations for securities it is owed by the {{gmslaprov|Defaulting Party}}; or [[bid]] quotations for securities it owes the {{gmslaprov|Defaulting Party}} from at least two regular participants in the {{gmslaprov|Appropriate Market}} in what it determines to be a commercially reasonable size, it may treat as the {{gmslaprov|Default Market Value}} the arithmetic mean of the quoted prices as reasonably adjusted to account for for accrued but unpaid interest and {{gmslaprov|Transaction Costs}}. <br>

Latest revision as of 10:48, 31 March 2022

11.4 Transactions and quotes: If, between the Termination Date and the Default Valuation Time:

(a) Actual sale or purchase: the Non-Defaulting Party has sold securities equivalent to those it owes the Defaulting Party or bought in securities equivalent to those the Defaulting Party owes it, the Non-Defaulting Party may treat the Default Market Value as the net proceeds that sale or purchase. Where it sells or Buys In a different amount of Equivalent Securities, Non-Defaulting Party may in good faith pro rate those values to determine the Default Market Value.
(b) Market quotes: the Non-Defaulting Party has received offer quotations for securities it is owed by the Defaulting Party; or bid quotations for securities it owes the Defaulting Party from at least two regular participants in the Appropriate Market in what it determines to be a commercially reasonable size, it may treat as the Default Market Value the arithmetic mean of the quoted prices as reasonably adjusted to account for for accrued but unpaid interest and Transaction Costs.
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