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{{gmslaanat|9}} | {{gmslaanat|9}} | ||
Mini close-out is the method of terminating an individual {{gmslaprov|Loan}} under a {{gmsla}} or an {{osla}} where there is a settlement failure without actually closing out the whole agreement | Mini close-out is the method of terminating an individual {{gmslaprov|Loan}} under a {{gmsla}} or an {{osla}} where there is a settlement failure without actually closing out the whole agreement. | ||
===[[GMSLA Netting]]=== | |||
Since prudential requirements to have [[netting opinion]]s do not apply within single transactions, one does not need a mini close-out provision to net within transactions under a GMSLA. That happens as of right. Therefore if, as is often the case, your loan portfolio is all the “same way round” — if you are borrowing from, but never lending to, a lender in a gross jurisdiction, then netting doesn’t really do anything for you. Your problem will be your {{gmslaprov|collateral}} [[haircut]], for which you will be an unsecured creditor of the lender. To fix this, a pledge GMSLA is what you are looking for. | |||
===Non-affected party’s option=== | |||
Note that {{gmslaprov|mini close-out}} is the [[non-affected party|non-affected party’s]] option: If a {{gmslaprov|Borrower}}, on terminating a {{gmslaprov|Loan}}, cannot then redeliver the borrowed {{gmslaprov|Securities}} (because of an upstream failure), it cannot force a {{gmslaprov|mini close-out}}. | Note that {{gmslaprov|mini close-out}} is the [[non-affected party|non-affected party’s]] option: If a {{gmslaprov|Borrower}}, on terminating a {{gmslaprov|Loan}}, cannot then redeliver the borrowed {{gmslaprov|Securities}} (because of an upstream failure), it cannot force a {{gmslaprov|mini close-out}}. | ||
'''Odd spot''': See the peculiar impact [[mini-closeout]] has on {{isdaprov|Default Under Specified Transaction}} under the {{isdama}}. | '''Odd spot''': See the peculiar impact [[mini-closeout]] has on {{isdaprov|Default Under Specified Transaction}} under the {{isdama}}. | ||
{{seealso}} | |||
*[[GMSLA Netting]] | |||
*[[Pledge GMSLA]] | |||
*{{isdaprov|DUST}} |