Standard settlement time - GMSLA Provision: Difference between revisions
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Well, not strictly speaking a {{gmsla}} provision - more a textual reference, in clauses {{gmslaprov|8.1}} | Well, not strictly speaking a {{gmsla}} provision - more a textual reference, in clauses {{gmslaprov|8.1}} the "standard settlement time" is not defined in the {{gmsla}} but worth mentioning that, having recalled a {{gmslaprov|Loan}}, a {{gmslaprov|Lender}} must allow at least a standard settlement cycle to get the securities back. Which stands to reason if you think about it. A Borrower who terminates the loan can send them back immediately - it being harder (but in my experience not impossible) to take ''yourself'' by surprise. | ||
{{nuts|GMSLA|8.1}} | {{nuts|GMSLA|8.1}} | ||
===See also === | ===See also === | ||
Revision as of 17:15, 15 March 2016
Well, not strictly speaking a 2010 GMSLA provision - more a textual reference, in clauses 8.1 the "standard settlement time" is not defined in the 2010 GMSLA but worth mentioning that, having recalled a Loan, a Lender must allow at least a standard settlement cycle to get the securities back. Which stands to reason if you think about it. A Borrower who terminates the loan can send them back immediately - it being harder (but in my experience not impossible) to take yourself by surprise.
8.1 in a Nutshell™ (GMSLA edition)
8.1: Lender’s right to terminate a Loan: Unless it is a term Loan, Lender may terminate a Loan and call for Equivalent Securities by giving notice on any Business Day. Lender must allow the Borrower at least the standard settlement cycle to return Equivalent Securities.
See also
- Standard Settlement Cycle in the world of equity derivatives.