This appendix outlines the risks and consequences associated with collateral arrangements involving U.S. banking organizations, broker-dealers, and futures commission merchants (FCMs). It distinguishes between Customer Assets, Custodial Assets, and Non-Customer Assets, and explains the regulatory requirements for each under U.S. law. The document also discusses the conditions under which Customer Assets can be used or substituted by broker-dealers and FCMs, and the implications for customer claims in case of asset insufficiency.
doj/DataSet10/EFTA01385559.pdf
{"title":"Appendix 3: Re-use Risks and Consequences under Collateral Arrangements","document_date":"2016","document_type":"legal","document_subtype":"Appendix","key_organizations":["U.S. Securities and Exchange Commission","Commodity Futures Trading Commission","International Swaps and Derivatives Association","Association for Financial Markets in Europe","Futures Industry Association","International Capital Market Association","International Securities Lending Association","SIFMA"],"reference_numbers":["DB-SDNY-0086848","SDNY_GM_00233032","EFTA01385559"]}