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Market terminology - GMSLA Provision: Difference between revisions
Market terminology - GMSLA Provision (view source)
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====Commentary==== | ====Commentary==== | ||
A point of great confusion in the market, given the unhelpful title of the agreement. | |||
But there is '''no''' lending done under a {{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 {{gmslaprov|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. | |||
====Related Provisions==== | ====Related Provisions==== | ||