Talk:Market Value - GMSLA Provision: Difference between revisions

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2022 ISDA
Nutshell


“Market Value” means, unless otherwise agreed between the parties, in relation to:
Market Value means:
(i) any Securities at any time on any date:
(a) Securities: For Securities the mid price market quotation at Close of Business on the previous Business Day
(a) the price for such Securities obtained from the Relevant Pricing Source or, if no Relevant Pricing Source is specified, a generally recognized pricing source agreed by the parties; or
(i) published on a reputable information service chosen by the Lender; or failing that
(b) if a price from such a source is unavailable, the price obtained from a dealer for the relevant Securities as agreed by the parties,
(ii) derived from a mid price from a dealer chosen by the Lender
in each case as of that time on that date, or as otherwise agreed by the parties plus, in each case, the aggregate amount of Distributions which have accrued but not yet been paid in respect of the Securities to the extent not included in such price; and
(unless either party thinks there’s been an unusual market movement since then, in which case the latest available price) plus:
(ii) cash, the amount of the currency concerned.
(iii) accrued Income if not included in the quote.
However, if Securities are suspended or cannot legally be Transferred, or are Transferred or required to be Transferred to a government, trustee or other third party (whether by reason of nationalization, expropriation or otherwise) the Market Value of those Securities shall be the amount agreed between the parties, or, absent agreement, an estimate of the market value of the Securities as of that time on that date provided by a dealer agreed between the parties. If the parties do not agree a dealer, then the Market Value of the Securities shall be the Arithmetic Mean of the Market Value of the Securities as of that time on that date quoted by two or more leading dealers in the relevant Securities selected by the party making the determination of Market Value in good faith.
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.

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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