Template:Gmsla equivalence: Difference between revisions

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Now here's a funny thing. In the {{2000gmsla}}, there were four defined terms relating to the assets and collateral that pass between the parties to a stock loan, all of them nouns: "{{gmslaprov|Securities}}", "{{gmslaprov|Collateral}}", "{{gmslaprov|Equivalent Securities}}" and "{{eqderivprov|Equivalent Collateral}}".
Techy linguistic aside: Now here’s a funny thing. In the {{2000gmsla}}, there were ''four'' defined terms relating to the {{gmslaprov|Securities}} and {{gmslaprov|Collateral}} that pass between the parties to a [[stock loan]], all of them [[noun]]s:  
 
*{{gmslaprov|Securities}}
Under the {{2010gmsla}}, by contrast there are three; two nouns and an adjective "{{eqderivprov|Securities}}", "{{gmslaprov|Collateral}}" and "{{gmslaprov|Equivalent}}".
*{{gmslaprov|Collateral}}
 
*{{gmslaprov|Equivalent Securities}}
The difference you ask? Well, it's a neat linguistic one:
*{{gmslaprov|Equivalent Collateral}}
:In the earlier case - if you're anal - to capture the concept of an asset or collateral under the loan whichever way it presently happens to be travelling, you would need to say "Securities or Equivalent Securities, as the case may be".
But under the {{2010gmsla}}, there are just ''three''; two shorter [[noun]]s and an [[adjective]]:
:In the 2010 model, you can capture the same concept by saying "Securities" - because "Equivalent" Securities is not a distinct concept, but a subset of the main concept.
*{{gmslaprov|Securities}}
 
*{{gmslaprov|Collateral}}
So, chapeau to those clever people at Freshfields Bruckhaus Deringer.
*{{gmslaprov|Equivalent}}
This means  you can move from the utterly tiring “{{gmslaprov|Securities}}, {{gmslaprov|Collateral}}, {{gmslaprov|Equivalent Securities}} or {{gmslaprov|Equivalent Collateral}}” which is fire-hosed throughout the {{2000gmsla}} to the less offensive “{{gmslaprov|Securities}}, {{gmslaprov|Collateral}} or their {{gmslaprov|Equivalent}}s” in the {{gmsla}}.<ref>Well,you could have, but the drafters didn’t.</ref>

Latest revision as of 10:01, 20 December 2020

Techy linguistic aside: Now here’s a funny thing. In the 2000 GMSLA, there were four defined terms relating to the Securities and Collateral that pass between the parties to a stock loan, all of them nouns:

But under the 2010 GMSLA, there are just three; two shorter nouns and an adjective:

This means you can move from the utterly tiring “Securities, Collateral, Equivalent Securities or Equivalent Collateral” which is fire-hosed throughout the 2000 GMSLA to the less offensive “Securities, Collateral or their Equivalents” in the 2010 GMSLA.[1]

  1. ↑ Well,you could have, but the drafters didn’t.
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