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}} ('''NDP''') 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}} ('''NDP''') 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> | ||
::(b) '''Market quotes''': the NDP has received | ::(b) '''Market quotes''': the NDP 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> | ||
Revision as of 09:00, 24 June 2020
- 11.4 Transactions and quotes: If, between the Termination Date and the Default Valuation Time:
- (a) Actual sale or purchase: the Non-Defaulting Party (NDP) has bought or sold securities equivalent to those it owes or is owed by the Defaulting Party it may treat the 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 Equivalent Securities, Non-Defaulting Party may in good faith pro rate those values to determine the necessary Default Market Value.
- (b) 'Market quotes: the NDP 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.
- (a) Actual sale or purchase: the Non-Defaulting Party (NDP) has bought or sold securities equivalent to those it owes or is owed by the Defaulting Party it may treat the 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 Equivalent Securities, Non-Defaulting Party may in good faith pro rate those values to determine the necessary Default Market Value.