Talk:Market Value - GMSLA Provision: Difference between revisions

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Nutshell


Market Value means:
Market Value means:
(a) in relation to the valuation of Securities, Equivalent Securities, Collateral or Equivalent Collateral (other than Cash Collateral or a Letter of Credit):
(a) Securities: For Securities the mid price market quotation at Close of Business on the previous Business Day
(i) such price as is equal to the market quotation for the bid price of such Securities, Equivalent Securities, Collateral and/or Equivalent Collateral as derived from a reputable pricing information service reasonably chosen in good faith by Lender; or
(i) published on a reputable information service chosen by the Lender; or failing that
(ii) if unavailable the market value thereof as derived from the prices or rates bid by a reputable dealer for the relevant instrument reasonably chosen in good faith by Lender,
(ii) derived from a mid price from a dealer chosen by the Lender
in each case at Close of Business on the previous Business Day or, at the option of either Party where in its reasonable opinion there has been an exceptional movement in the price of the asset in question since such time, the latest available price; plus (in each case)
(unless either party thinks there’s been an unusual market movement since then, in which case the latest available price) plus:
(iii) the aggregate amount of Income which has accrued but not yet been paid in respect of the Securities, Equivalent Securities, Collateral or Equivalent Collateral concerned to the extent not included in such price,
(iii) accrued Income if not included in the quote.
(provided that the price of Securities, Equivalent Securities, Collateral or Equivalent Collateral that are suspended shall (for the purposes of paragraph 5) be nil unless the Parties otherwise agree and (for all other purposes) shall be the price of such Securities, Equivalent Securities, Collateral or Equivalent Collateral, as the case may be, as of Close of Business on the dealing day in the relevant market last preceding the date of suspension or a commercially reasonable price agreed between the Parties;
Where the assets in question are not trading freely the Parties may agree their Market Value. Failing that, they can ask an mutually acceptable dealer to quote. If they can’t agree on one of those, they can seek an average of Reference Dealer quotations (with a laborious mechanism for figuring our what to include and how to average it). If all else fails the Market Value giving up altogether and falling back on the reasonable determination of the Party originally making the determination).[1]
(b) in relation to a Letter of Credit the face or stated amount of such Letter of Credit; and
(b) Letters of credit: for any Letter of Credit, its face value.
(c) in relation to Cash Collateral the amount of the currency concerned;
(c) Cash: for Cash its face value.

Latest revision as of 10:48, 21 March 2022

Nutshell

Market Value means: (a) Securities: For Securities the mid price market quotation at Close of Business on the previous Business Day (i) published on a reputable information service chosen by the Lender; or failing that (ii) derived from a mid price from a dealer chosen by the Lender (unless either party thinks there’s been an unusual market movement since then, in which case the latest available price) plus: (iii) accrued Income if not included in the quote. Where the assets in question are not trading freely the Parties may agree their Market Value. Failing that, they can ask an mutually acceptable dealer to quote. If they can’t agree on one of those, they can seek an average of Reference Dealer quotations (with a laborious mechanism for figuring our what to include and how to average it). If all else fails the Market Value giving up altogether and falling back on the reasonable determination of the Party originally making the determination).[1] (b) Letters of credit: for any Letter of Credit, its face value. (c) Cash: for Cash its face value.

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