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In Part Two of this series, we documented how fees, dividends and defaults relate to securities lending by prime brokers. In this installment, we’ll discuss how counterparties transfer securities between borrower and lender.
Transfers are either physical, by way of a clearing organization, or by other means agreed upon between the counterparties. Physical transfers must be delivered along with duly executed stock or bond transfer powers with guaranteed signatures by a bank or member firm of the New York Stock Exchange.Click here for reuse options!
Copyright 2011 Eric Bank, Freelance Writer