Template:Delivery failures under GMSLA: Difference between revisions

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 ===Failures to ''deliver'' are not {{gmslaprov|Events of Default}}===
-Why do we not apply an {{gmslaprov|Event of Default}} to failures to deliver {{gmslaprov|Securities}} under a {{gmsla}}?
+{{gmslaprov|Failures to deliver}} {{gmslaprov|Securities}} under a {{gmsla}} are not {{gmslaprov|Events of Default}} because failure to deliver securities to initiate a {{gmslaprov|Loan}} is not a breach of agreement, and if a {{gmslaprov|Borrower}} fails to redeliver {{gmslaprov|Equivalent}} {{gmslaprov|Securities}} at the end of a {{gmslaprov|Loan}},  the {{gmslaprov|Lender}} may [[buy in]] {{gmslaprov|Securities}} to cover the fail, and may execute a [[mini close-out]], but that is not an {{eqderivprov|Event of Default}} either.
-A failure to deliver securities to initiate a loan is not a breach of agreement, and if a Borrower fails to redeliver {{gmslaprov|Equivalent}} {{gmslaprov|Securities}} at the end of a {{gmslaprov|Loan}},  the {{gmslaprov|Lender}} may [[buy in]] {{gmslaprov|Securities}} to cover the fail, and may executed a [[mini close-out]], but that is not an {{eqderivprov|Event of Default}} either. But a failure to deliver Collateral at inception or to redeliver {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}} on termination '''is''' an {{gmslaprov|Event of Default}}.
+But a failure to deliver {{eqderivprov|Collateral}} at inception or to redeliver {{gmslaprov|Equivalent}} {{gmslaprov|Collateral}} on termination '''is''' an {{gmslaprov|Event of Default}}.
-====Delivery Failures====
+Deliveries frequently fail in the stock lending market for many reasons:
-Deliveries frequently fail in the stock lending market for a number of reasons:
 *Operational failures, such as a mismatch of instructions;
 *A {{eqderivprov|Lender}} may lose its expected supply (for example a rehypothecating [[prime broker]] intending to [[rehypothecate]] client’s securities where the client recalls and sells the securities sells before the Loan settles)