Template:M comp disc GMSLA Market Value: Difference between revisions

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Revision as of 11:28, 10 March 2022 (view source) Amwelladmin (talk \| contribs) (Created page with "Interesting, and not entirely welcome, development in the technology from the {{2000gmsla}}, which provided that where any instrument was su...")		Latest revision as of 11:29, 10 March 2022 (view source) Amwelladmin (talk \| contribs) No edit summary
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	In the {{gmsla}} we are stuck with an elaborate and largely pointless waterfall — if the instrument is suspended you aren’t gong to get a price from an information service or a market-maker, and leaving everything in the hands of {{gmslaprov\|Lender}}s who may not have a clue (in the a case of principal {{gmslaprov\|Lender}}s under [[agent lending]] arrangements) may well be inclined to purport to have no instructions from a principal who has no clue (in the case of [[agent lender]]s themselves) and in any case may be firmly axed to ''pretend'' they don’t have a clue even if they do have one, where the {{gmslaprov\|Loaned Security}} is the one that has been suspended).		In the {{gmsla}} we are stuck with an elaborate and largely pointless waterfall — if the instrument is suspended you aren’t gong to get a price from an information service or a market-maker, and leaving everything in the hands of {{gmslaprov\|Lender}}s who may not have a clue (in the a case of principal {{gmslaprov\|Lender}}s under [[agent lending]] arrangements) may well be inclined to purport to have no instructions from a principal who has no clue (in the case of [[agent lender]]s themselves) and in any case may be firmly axed to ''pretend'' they don’t have a clue even if they do have one, where the {{gmslaprov\|Loaned Security}} is the one that has been suspended).

	The {{2000gmsla}} set the value of ~~suspended~~ instruments — at least for {{gmsla2000prov\|Collateral}} valuation purposes — at nil, which seems harsh, but really isn’t, if there is no way of trading the instrument. In that case the innocent party (i.e., the other one) will want either a ton more collateral (if it is Lender) or all of its Collateral back if it is {{gmslaprov\|Borrower}}).		The {{2000gmsla}} definition of {{gmsla2000prov\|Market Value}} set the value of “suspended” instruments — at least for {{gmsla2000prov\|Collateral}} valuation purposes — at nil, which seems harsh, but really isn’t, if there is no way of trading the instrument. In that case the innocent party (i.e., the other one) will want either a ton more collateral (if it is Lender) or all of its Collateral back if it is {{gmslaprov\|Borrower}}).