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Template:Nutshell GMSLA 11.4: Difference between revisions
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:{{gmslaprov|11.4}} '''Transactions and quotes''': If, between the {{gmslaprov|Termination Date}} and the {{gmslaprov|Default Valuation Time}}: <br> | :{{gmslaprov|11.4}} '''Transactions and quotes''': If, between the {{gmslaprov|Termination Date}} and the {{gmslaprov|Default Valuation Time}}: <br> | ||
::(a) '''Actual sale or purchase''': the {{gmslaprov|Non-Defaulting Party}} ('''NDP''') has bought or sold securities {{gmslaprov|equivalent}} to those it owes or is owed by the {{gmslaprov|Defaulting Party}} it may treat the {{gmslaprov|Default Market Value}} as the net sale proceeds or aggregate purchase cost of the relevant securities. Were the securities sold or purchased are not in identical in amount to the {{gmslaprov|Equivalent}} {{gmslaprov|Securities}}, {{gmslaprov|Non-Defaulting Party}} may [[in good faith]] pro rate those values to determine the necessary {{gmslaprov|Default Market Value}}. <br> | ::(a) '''Actual sale or purchase''': the {{gmslaprov|Non-Defaulting Party}} ('''NDP''') has bought or sold securities {{gmslaprov|equivalent}} to those it owes or is owed by the {{gmslaprov|Defaulting Party}} it may treat the {{gmslaprov|Default Market Value}} as the net sale proceeds or aggregate purchase cost of the relevant securities. Were the securities sold or purchased are not in identical in amount to the {{gmslaprov|Equivalent}} {{gmslaprov|Securities}}, {{gmslaprov|Non-Defaulting Party}} may [[in good faith]] pro rate those values to determine the necessary {{gmslaprov|Default Market Value}}. <br> | ||
::(b) '''Market quotes''': the NDP has received | ::(b) '''Market quotes''': the NDP has received '''offer''' quotations for securities it is owed by the {{gmslaprov|Defaulting Party}}; or ''bid''' quotations for securities it owes the {{gmslaprov|Defaulting Party}} from at least two regular participants in the {{gmslaprov|Appropriate Market}} in what it determines to be a commercially reasonable size, it may treat as the {{gmslaprov|Default Market Value}} the arithmetic mean of the quoted prices as reasonably adjusted to account for for accrued but unpaid interest and {{gmslaprov|Transaction Costs}}. <br> | ||