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{{gmslasnap|11.4}} | |||
====Commentary==== | |||
{{nuts|gmsla|11.4}} | {{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==== | ====See Also==== | ||
{{gmslaanatomy}} | {{gmslaanatomy}} |