Template:Nutshell GMSLA 11.4: Difference between revisions
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{{gmslaprov|11.4}} If between the {{gmslaprov|Termination Date}} and the {{gmslaprov|Default Valuation Time}}: <br> | :{{gmslaprov|11.4}} 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 | ::(a) '''Actual sale or purchase''': the {{gmslaprov|Non-Defaulting Party}} ('''NDP''') has | ||
::'''sold''' {{gmslaprov|Securities}}/{{gmslaprov|Collateral}} {{gmslaprov|equivalent}} to those it is owed by the {{gmslaprov|Defaulting Party}}; or <br> | :::'''sold''' {{gmslaprov|Securities}}/{{gmslaprov|Collateral}} {{gmslaprov|equivalent}} to those it is owed by the {{gmslaprov|Defaulting Party}}; or <br> | ||
::'''bought''' {{gmslaprov|Securities}}/{{gmslaprov|Collateral}} {{gmslaprov|equivalent}} to those it owes the {{gmslaprov|Defaulting Party}}; <br> | :::'''bought''' {{gmslaprov|Securities}}/{{gmslaprov|Collateral}} {{gmslaprov|equivalent}} to those it owes the {{gmslaprov|Defaulting Party}}; <br> | ||
:it may treat the {{gmslaprov|Default Market Value}} as the net sale proceeds or aggregate purchase cost of the relevant sale or purchase. <br> | ::it may treat the {{gmslaprov|Default Market Value}} as the net sale proceeds or aggregate purchase cost of the relevant sale or purchase. <br> | ||
:(b) '''Reference market quotes''': the NDP has received: <br> | ::(b) '''Reference market quotes''': the NDP has received: <br> | ||
::'''offer''' quotations for {{gmslaprov|Securities}}/{{gmslaprov|Collateral}} {{gmslaprov|equivalent}} to those it is owed by the {{gmslaprov|Defaulting Party}}; or | :::'''offer''' quotations for {{gmslaprov|Securities}}/{{gmslaprov|Collateral}} {{gmslaprov|equivalent}} to those it is owed by the {{gmslaprov|Defaulting Party}}; or | ||
::'''bid''' quotations for {{gmslaprov|Securities}}/{{gmslaprov|Collateral}} {{gmslaprov|equivalent}} to those it owes the {{gmslaprov|Defaulting Party}}; <br> | :::'''bid''' quotations for {{gmslaprov|Securities}}/{{gmslaprov|Collateral}} {{gmslaprov|equivalent}} to those it owes the {{gmslaprov|Defaulting Party}}; <br> | ||
:from two or more market makers in a {{tag|commercially reasonable}} size (as determined by the NDP) it may elect to treat as the {{gmslaprov|Default Market Value}} the arithmetic mean of those prices quoted adjusted in a commercially reasonable manner by the NDP to reflect accrued but unpaid coupons plus or minus transaction costs.<br> | ::from two or more market makers in a {{tag|commercially reasonable}} size (as determined by the NDP) it may elect to treat as the {{gmslaprov|Default Market Value}} the arithmetic mean of those prices quoted adjusted in a commercially reasonable manner by the NDP to reflect accrued but unpaid coupons plus or minus transaction costs.<br> | ||
Revision as of 12:25, 8 March 2018
- 11.4 If between the Termination Date and the Default Valuation Time:
- (a) Actual sale or purchase: the Non-Defaulting Party (NDP) has
- sold Securities/Collateral equivalent to those it is owed by the Defaulting Party; or
- bought Securities/Collateral equivalent to those it owes the Defaulting Party;
- sold Securities/Collateral equivalent to those it is owed by the Defaulting Party; or
- it may treat the Default Market Value as the net sale proceeds or aggregate purchase cost of the relevant sale or purchase.
- (b) Reference market quotes: the NDP has received:
- offer quotations for Securities/Collateral equivalent to those it is owed by the Defaulting Party; or
- bid quotations for Securities/Collateral equivalent to those it owes the Defaulting Party;
- from two or more market makers in a commercially reasonable size (as determined by the NDP) it may elect to treat as the Default Market Value the arithmetic mean of those prices quoted adjusted in a commercially reasonable manner by the NDP to reflect accrued but unpaid coupons plus or minus transaction costs.
- (a) Actual sale or purchase: the Non-Defaulting Party (NDP) has