Template:M summ GMSLA Buy-In: Difference between revisions
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A {{gmslaprov|buy in}} is the self-help process whereby a counterparty can settle a failing delivery itself, and charge it back to the failing counterparty. | A {{gmslaprov|buy in}} is the self-help process whereby a counterparty can settle a failing delivery itself, and charge it back to the failing counterparty. | ||
To understand the buy in process you really want to go and have a look at clauses {{gmslaprov|9.3}} and — to work out what this means when calculating your [[mini close-out]], {{gmslaprov|11.4}} of the {{gmsla}} . All the information is there. But, in a nutshell: | |||
{{quote|{{Nutshell GMSLA 9.3 | {{quote|{{Nutshell GMSLA 9.3}}}} | ||
{{buy-in|gmslaprov}} | {{buy-in|gmslaprov}} | ||
Revision as of 10:17, 31 March 2022
A buy in is the self-help process whereby a counterparty can settle a failing delivery itself, and charge it back to the failing counterparty.
To understand the buy in process you really want to go and have a look at clauses 9.3 and — to work out what this means when calculating your mini close-out, 11.4 of the 2010 GMSLA . All the information is there. But, in a nutshell:
9.3 Failure by either Party to deliver
Where a Party (the Transferor) fails to deliver Equivalent Securities or Collateral when due and the other Party (the Transferee) incurs interest, overdraft expenses or Buy in costs the Transferor must, within one Business Day of a demand, pay the Transferee and hold it harmless against those costs that arise directly from that failure other than (i) costs arising from the Transferee’s negligence or wilful default and (ii) any consequential losses).