Adjusted market value
(a) Adjusted market value means: (1) With respect to the value of cash, securities, or other eligible collateral transferred by the covered company to a counterparty, the sum of: (i) The market value of the cash, securities, or other eligible collateral; and (ii) The product of the market value of the securities or other eligible collateral multiplied by the applicable collateral haircut in Table 1 to 217.132 of the Board's Regulation Q (12 CFR 217.132); and (2) With respect to cash, securities, or other eligible collateral received by the covered company from a counterparty: (i) The market value of the cash, securities, or other eligible collateral; minus (ii) The market value of the securities or other eligible collateral multiplied by the applicable collateral haircut in Table 1 to 217.132 of the Board's Regulation Q (12 CFR 217.132). (3) Prior to calculating the adjusted market value pursuant to paragraphs (a)(1) and (2) of this section, with regard to a transaction that meets the definition of repo-style transaction in 217.2 of the Board's Regulation Q (12 CFR 217.2), the covered company would first multiply the applicable collateral haircuts in Table 1 to 217.132 of the Board's Regulation Q (12 CFR 217.132) by the square root of 1/2.