Template:Nutshell GMSLA Market Value: Difference between revisions

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'''{{gmslaprov|Market Value}}''' means:
'''{{gmslaprov|Market Value}}''' means: <br>
:(a) '''[[Cash]] and [[LC]]s''': for {{gmslaprov|Cash}} or any {{gmslaprov|Letter of Credit}}, its [[face value]].
(a) '''{{gmslaprov|Securities}}''': For {{gmslaprov|Securities}} the mid price [[market quotation]] at {{gmslaprov|Close of Business}} on the previous {{gmslaprov|Business Day}}
:(b) '''{{gmslaprov|Securities}}''': For {{gmslaprov|Securities}} the mid-price market quotation at {{gmslaprov|Close of Business}} on the previous {{gmslaprov|Business Day}} (unless either party thinks there's been an unusual market movement since then, in which case the latest available price) plus accrued {{gmslaprov|Income}} if not included in the quote.<br>
:(i) published on a reputable information service chosen by the {{gmslaprov|Lender}}; or failing that
Where the relevant instruments are not trading freely the {{gmslaprov|Parties}} may agree their {{gmslaprov|Market Value}}. If they can't, it will be provided by an mutually acceptable third party dealer. If they can't agree on one of those, it will be an average of certain {{gmslaprov|Reference Dealer}} quotations (with a laborious mechanism for figuring our what to include and how to average it, eventually giving up altogether and falling back on the reasonable determination of the {{gmslaprov|Party}} originally making the determination).<ref>Tiresome, I know.</ref> <br>
:(ii) derived from a mid price from a [[dealer]] chosen by the {{gmslaprov|Lender}}
:(unless either party thinks there’s been an unusual market movement since then, in which case the latest available price) plus (in each case
:(iii) accrued {{gmslaprov|Income}} if not included in the quote.<br>
Where the assets in question are not trading freely the {{gmslaprov|Parties}} may agree their {{gmslaprov|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 {{gmslaprov|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 {{gmslaprov|Party}} originally making the determination).<ref>Tiresome, I know.</ref> <br>
(b) '''[[Letters of credit]]''': for any {{gmslaprov|Letter of Credit}}, its [[face value]]. <br>
(c) '''[[Cash]]''': for {{gmslaprov|Cash}} its [[face value]].<br>

Revision as of 14:33, 6 November 2019

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 (in each case
(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.

  1. ↑ Tiresome, I know.
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