Template:GMSLA failures to return equivalent collateral: Difference between revisions

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(Created page with "The GMSLA is deliberately designed so that the return of {{gmslaprov|Equivalent}} {{isdaprov|Securities}}, or the return of {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}},...")
 
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The GMSLA is deliberately designed so that the return of {{gmslaprov|Equivalent}} {{isdaprov|Securities}}, or the return of {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}}, is ''not'' an {{gmslaprov|Event of Default}}.
The GMSLA is deliberately designed so that the return of {{gmslaprov|Equivalent}} {{gmslaprov|Securities}}, or the return of {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}}, is ''not'' an {{gmslaprov|Event of Default}}.


These failures are designed to be caught by the {{gmslaprov|Mini-Closeout}} section, which gives the client a self-help, pre-default, remedy of buying in, liquidating the borrowed security, valuing the offsetting positions and calling for a cash payment. A failure to make that payment would be an EoD (under {{gmslaprov|10.1(c)}}).
These failures are designed to be caught by the {{gmslaprov|Mini-Closeout}} section, which gives the client a self-help, pre-default, remedy of buying in, liquidating the borrowed security, valuing the offsetting positions and calling for a cash payment. A failure to make that payment would be an EoD (under {{gmslaprov|10.1(c)}}).

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