Template:Nutshell GMSLA 11.4: Difference between revisions

Template:Nutshell GMSLA 11.4 (view source)

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 {{gmslaprov|11.4}} If between the {{gmslaprov|Termination Date}} and the {{gmslaprov|Default Valuation Time}}: <br>
-(a)	the {{gmslaprov|Non-Defaulting Party}} ('''NDP''') has bought {{gmslaprov|Securities}}/{{gmslaprov|Collateral}} {{gmslaprov|equivalent}} to those it owes {{gmslaprov|Defaulting Party}} ('''DP''') or has sold {{gmslaprov|Securities}}/{{gmslaprov|Collateral}} {{gmslaprov|equivalent}} to those DP owes it (whether or not that transaction has settled) it may treat the {{gmslaprov|Default Market Value}} as the net sale proceeds or aggregate purchase cost of such Securities/Collateral;  <br>
+(a)	(whether or not such a transaction has settled) the {{gmslaprov|Non-Defaulting Party}} ('''NDP''') has
-(b)	the NPD has received bid or offer quotations from two or more market makers in a commercially reasonable size (as determined by the NDP) it may elect to treat as the {{gmslaprov|Default Market Value}} as the arithmetic mean of the prices quoted adjusted in a commercially reasonable manner by the NDP to reflect accrued but unpaid coupons plus or minus transaction costs.<br>
+:(i) '''sold''' {{gmslaprov|Securities}}/{{gmslaprov|Collateral}} {{gmslaprov|equivalent}} to those it is owed by the {{gmslaprov|Defaulting Party}}; or <br>
+:(ii) '''bought''' {{gmslaprov|Securities}}/{{gmslaprov|Collateral}} {{gmslaprov|equivalent}} to those it owes the {{gmslaprov|Defaulting Party}}; <br>
+ it may treat the {{gmslaprov|Default Market Value}} as the net sale proceeds or aggregate purchase cost of the relevant sale or purchase.  <br>
+(b)	the NDP has received : <br>
+:'''offer''' quotations for {{gmslaprov|Securities}}/{{gmslaprov|Collateral}} {{gmslaprov|equivalent}} to those it is owed by the {{gmslaprov|Defaulting Party}}; or
+:'''bid''' quotations for {{gmslaprov|Securities}}/{{gmslaprov|Collateral}} {{gmslaprov|equivalent}} to those it owes the {{gmslaprov|Defaulting Party}}; <br>
+from two or more market makers in a {{tag|commercially reasonable}} size (as determined by the NDP) it may elect to treat as the {{gmslaprov|Default Market Value}} the arithmetic mean of those prices quoted adjusted in a commercially reasonable manner by the NDP to reflect accrued but unpaid coupons plus or minus transaction costs.<br>