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{{nuts|gmsla|11.4}} | {{nuts|gmsla|11.4}} | ||
Note that to determine a {{ | Note that to determine a {{gmslaprov|Default Market Value}} the counterparty must '''sell''' (''not'' buy) securities equivalent to those it is expecting back from a {{gmslaprov|Non-Defaulting Party}}. This, we think, is to ensure that the price is "real": the temptation otherwise would be for the {{gmslaprov|Non-Defaulting Party}} to accept any old bid or offer, safe in the knowledge it can pass the cost on to the {{gmslaprov|Defaulting Party}}. | ||
Tricks to watch out for, especially in illiquid stocks, is that the | Tricks to watch out for, especially in illiquid stocks, is that the {{gmslaprov|Non-Defaulting Party}} is not somehow influencing the price at which that innocent third party might transact (by agreeing to enter an offsetting transaction at the same time). That would be fraudulent, of course. | ||