Template:Gmsla equivalence

Now here's a funny thing. In the 2000 GMSLA, there were four defined terms relating to the assets and collateral that pass between the parties to a stock loan, all of them nouns: "Securities", "Collateral", "Equivalent Securities" and "Equivalent Collateral".

Under the 2010 GMSLA, by contrast there are three; two nouns and an adjective "Securities", "Collateral" and "Equivalent".

The difference being? Well, it's a neat linguistic one:

Under the 2000 GMSLA - if you're the sort of person who gets upset about this kind of thing - to capture the concept of an asset or collateral under the loan whichever way it presently happens to be travelling, you would need to say "Securities or Equivalent Securities, as the case may be".

In the 2010 GMSLA you can capture the same concept by just saying "Securities". Because "Equivalent" Securities is not a distinct from Securities, but a subset of it.

So, chapeau to those clever people at Freshfields Bruckhaus Deringer.

BUT THEN TAKE THAT CHAPEAU AWAY, because having been clever enough to do that, the 2010 GMSLA is still studded with expressions like "Securities equivalent to the relevant Loaned Securities or Collateral, as the case may be," and "Securities, Equivalent Securities, Collateral or Equivalent Collateral". YOU FOOLS.