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Recital 13

Recital 13

(13)Mandatory buy-ins allow for the payment of the difference between a financial instrument’s buy-in price and its original trade price to be made by the seller to the purchaser only where that buy-in reference price is higher than the original trade price. That asymmetry would unduly benefit the purchaser in the event that the buy-in reference price is lower than the original trade price. It would also make the pass-on mechanism impossible to apply since, notably, the amounts to be paid can differ between each step in the chain of transactions, depending on when each intermediary executes the buy-in. Therefore, that asymmetry should be removed to ensure that the trading parties are restored to the economic terms that would have applied had the original transaction taken place.

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