Market terminology - GMSLA Provision
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GMSLA Anatomy™
Notwithstanding the use of expressions such as “borrow”, “lend”, “Collateral”, “Margin” etc. which are used to reflect terminology used in the market for transactions of the kind provided for in this Agreement, title to Securities “borrowed” or “lent” and “Collateral” provided in accordance with this Agreement shall pass from one Party to another as provided for in this Agreement, the Party obtaining such title being obliged to deliver Equivalent Securities or Equivalent Collateral as the case may be.
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Commentary
A point of great confusion in the market, given the unhelpful title of the agreement.
But there is no lending done under a 2010 GMSLA: A "stock loan" contract comprises of an outright sale, by full title transfer, of a stock, against a corresponding outright sale, by full title transfer, of collateral, and a right in the future to enter into opposing transactions, also outright sales by full title transfer, of equivalent securities and collateral. Note equivalent has a special meaning: not "more or less the same" or "broadly similar" but "the exact same thing, from the same ISIN".
For the purposes of this commentary, however, the learning is this: moment you are delivered your security under a stock loan it is yours, to do with as you please, against all the world.