No reuse of assets by depositary - UCITS V Provision: Difference between revisions

For [[Regulatory margin|Regulatory IM]] it is probably no biggie that you can’t do anything with it, since you are not meant to do anything with it anyway. The assets are meant to be immobilised, away from the clutches and rehypothecatory designs of your [[broker]] and the fragile, feather-weight, jacked-up-on-[[vega]] credit-quality of its [[client]].  But for [[ETD]] it’s  a different story: your [[clearing broker]] will need to the margin you posted to it down the line to satisfy its own [[IM]] requirements to the [[clearing house]] and [[intermediate broker]]s. If it can’t freely [[reuse]] your [[initial margin]], it will have to fund its own. ''And guess who’s going to pay for that''.<ref>A free bag of sweeties for you if you answered “me”.</ref>  

*[[Rehypothecation]]

*[[Agent lending]]