This document outlines the risks and consequences associated with the re-use of financial instruments provided as collateral under a title transfer or security collateral arrangement. It highlights the replacement of proprietary rights with unsecured claims, lack of client asset protection, potential impacts in case of insolvency or resolution authority actions, and the loss of voting rights. The document is intended for U.S. broker-dealers, futures commission merchants, banks, or branches of non-U.S. banks.
doj/DataSet10/EFTA01385554.pdf
{"document_type":"legal","document_subtype":"financial collateral arrangement","key_organizations":["International Swaps and Derivatives Association","Association for Financial Markets in Europe","SIFMA","Futures Industry Association","International Capital Market Association","Securities Lending Association"],"reference_numbers":["DB-SDNY-0086843","SDNY_GM_00233027","EFTA01385554"]}