Pledge GMSLA

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The pledge GMSLA is a version of the GMSLA developed in late 2017 early 2018 where instead of transferring collateral by title transfer, you pledge it. Unlike the US standard stock lending agreement, the MSLA, you don’t rehypothecate the collateral transferred to you, because that would defeat the purpose of pledging it in the first place[1]

What’s it for?

References

  1. An objection that is equally true of a US style pledge, but doesn't seem to have stopped the market insisting on one anyway.