Determination of Default Market Value - GMSLA Provision: Difference between revisions

Determination of Default Market Value - GMSLA Provision (view source)

756 bytes removed , 7 June 2021

Replaced content with "{{Manual|MSG|2010|11.4|Clause|11.4|short}}"

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-{{gmslasnap|11.4}}
+{{Manual|MSG|2010|11.4|Clause|11.4|short}}
-====Commentary====
-{{nuts|gmsla|11.4}}
-Note that to determine a {{gmraprov|Default Market Value}} the counterparty must '''sell''' (''not'' buy) securities equivalent to those it is expecting back from a {{gmslaprov|Non-Defaulting Party}}. This, we think, is to ensure that the price is "real": the temptation otherwise would be for the {{gmslaprov|Non-Defaulting Party}} to accept any old bid or offer, safe in the knowledge it can pass the cost on to the {{gmslaprov|Defaulting Party}}.
-Tricks to watch out for, especially in illiquid stocks, is that the NDP is not somehow influencing the price at which a third party might transact (by agreeing to enter an offsetting transaction at the same time). THat would be fraudulent, of course.
-====See Also====
-{{gmslaanatomy}}