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Template:M summ GMRA 4: Difference between revisions
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Amwelladmin (talk | contribs) (Created page with "This provision says far less than its heft would suggest it does. In a nutshell: *You can call for Margin if you have a Net Exposure, meaning the the amount the other party ow...") |
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*Where you post cash, you do so in the Base Currency and — stating the bleeding obvious here, as [[any fule kno]]<ref>At least, any fule who has read the [[JC]]’s impassioned rants on the subject of cash.</ref> — the transfer of cash creates [[indebtedness]] | *Where you post cash, you do so in the Base Currency and — stating the bleeding obvious here, as [[any fule kno]]<ref>At least, any fule who has read the [[JC]]’s impassioned rants on the subject of cash.</ref> — the transfer of cash creates [[indebtedness]] | ||
*In lieu of Margin Transfers the parties can agree to “reprice” a Transaction — effectively [[restriking]] and [[settle-to-market|settling it to market]] and creating a new {{gmraprov|Transaction}} in the same {{gmraprov|Purchased Securities}} at the prevailing rate — or to “adjust” it, in which case you can change up the {{gmslaprov|Purchased Securities}} to something else altogether. | *In lieu of Margin Transfers the parties can agree to “reprice” a Transaction — effectively [[restriking]] and [[settle-to-market|settling it to market]] and creating a new {{gmraprov|Transaction}} in the same {{gmraprov|Purchased Securities}} at the prevailing rate — or to “adjust” it, in which case you can change up the {{gmslaprov|Purchased Securities}} to something else altogether. | ||
There follow some laborious provisions explaining exactly how this happens, but they do no more than | There follow some laborious provisions explaining exactly how this happens, but they do no more than tediously — and, in all likelihood, wrongly — codify the real-world common sense your operations team will undoubtedly bring to the task of figuring it out; a feat you can bet the house on that they won’t achieve by reading the nether regions of paragraph {{gmraprov|4}} of the {{gmra}}. | ||