Income - GMSLA Provision: Difference between revisions
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{{gmslaanat|Income}} | {{gmslaanat|Income}} | ||
So the question is how this dovetails into the [[Manufactured payments in respect of Loaned Securities - GMSLA Provision|manufactured income]] provisions where the {{gmslaprov|Income}} in question is in some way contingent on a [[corporate action]], vote, or shareholding status. | |||
For if you lent the security to me — [[title transfer]] — and I [[Short sale|sold it short]] (as one does under a [[stock lending]] arrangement) and then a [[corporate action]] arose which entitled each shareholder who makes a certain election to receive a certain distribution, must I manufacture that distribution to you, even if I didn't make that election or, for that matter, even hold the share to be able to make that election? | |||
As to this, see Para {{gmslaprov|6.7}} | |||
Revision as of 11:43, 18 July 2018
So the question is how this dovetails into the manufactured income provisions where the Income in question is in some way contingent on a corporate action, vote, or shareholding status.
For if you lent the security to me — title transfer — and I sold it short (as one does under a stock lending arrangement) and then a corporate action arose which entitled each shareholder who makes a certain election to receive a certain distribution, must I manufacture that distribution to you, even if I didn't make that election or, for that matter, even hold the share to be able to make that election?
As to this, see Para 6.7