Derivatives · glossary
The way the Collateral Annex works: posted cash becomes the receiver's outright and is owed back as a debt. No security is created, so the loan's negative pledge does not apply. Atlas then carries credit risk on the bank for its cash. Annex, paragraph 3 · Chapter 10
Explained in Chapter 10, Collateral: the Annex and the Call, of Derivatives.
Also explained in European Brokerage.
Paragraph 3 of the annex makes every transfer a title transfer, which means the cash changes owner…Read Chapter 10, Collateral: the Annex and the Call →
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