Determination of Default Market Value - GMSLA Provision: Difference between revisions

Determination of Default Market Value - GMSLA Provision (view source)

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-{{gmslaprov|11.4}} If between the {{gmslaprov|Termination Date}} and the {{gmslaprov|Default Valuation Time}}: <br>
-(a)	the {{gmslaprov|Non-Defaulting Party}} (NDP) has bought Securities/Collateral equivalent to those it owes {{gmslaprov|Defaulting Party}} (DP) or has sold Securities/Collateral equivalent to those DP owes it (whether or not that transaction has settled) it may treat the {{gmslaprov|Default Market Value}} as the net sale proceeds or aggregate purchase cost of such Securities/Collateral;  <br>
-(b)	the NPD has received bid or offer quotations from two or more market makers in a commercially reasonable size (as determined by the NDP) it may elect to treat as the {{gmslaprov|Default Market Value}} as the arithmetic mean of the prices quoted adjusted in a commercially reasonable manner by the NDP to reflect accrued but unpaid coupons plus or minus transaction costs.<br>
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 {{gmslasnap|11.4}}