Hi to all.A simple question regarding the expression of the MtM of an equity piece on the standard indices.The equity piece trades on UF. To compute the MtM, I switched on equivalent running spread, which suggests that for a protection selling position, the MtM at time t should be :UpFront_0 x (PVO1_t / PVO1_0) minus UpFront_tBut when talking to my trader, he told me that the mket standard was to look at (UpFront_0 minus UpFront_t), which seems to be in advantage of the protection seller.Can someone tell me wether I'm right or wrong, and where does this feature come from ?Rgds,____________________slym

Here is the quick and dirty answer: your trader is looking at his MtM on a daily basis, thus he assumes that PV01 doesn't change that much on a day-to-day basis and he relies on his Back-Office to compute his true PnL at the end-of-day (imagine if he was to wait for all the PV01 to be computed before flashing his PnL and heading back home life is really tough).