Buy-In - GMSLA Provision

GMSLA Anatomy™

In a Nutshell™ Clause Buy-In:

Buy-In means an agreement where a transferee who buys in equivalent securities to cover a settlement failure can recover its costs of doing so from a failing transferor;
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2010 GMSLA full text of Clause Buy-In:

Buy-In means any arrangement under which, in the event of a seller or transferor failing to deliver securities to the buyer or transferee, the buyer or transferee of such securities is entitled under the terms of such arrangement to buy or otherwise acquire securities equivalent to such securities and to recover the cost of so doing from the seller or transferor;
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Commentary

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.

You really want to go and have a look at clauses 9.3 and 11.4 of the 2010 GMSLA to understand the buy in process. All the information is there.

redirectGmsla deliverable and receivable securities capsule

Relates to

2010 GMSLA Clause 9.3: Failure by either Party to deliver
2010 GMSLA Clause 11.4: Determination of Default Market Value.