Title transfer collateral arrangement: Difference between revisions

A {{tag|collateral}} arrangement whereby, instead of instigating a [[pledge]] or [[security interest]] of some kind, a debtor provides cash or [[financial collateral arrangement|financial collateral]] to its [[creditor]] by means of [[title transfer]] against a [[Contingencies|contingent obligation]] on the creditor to return an [[equivalent]] security should the [[exposure]] be resolved.

Known, for the purposes of the [[Financial Collateral Directive]], as a [[title transfer financial collateral arrangement|''title transfer'' financial collateral arrangement]]. But it’s the same thing among us finance lawyer freaks, and contrasted sharply with a [[security financial collateral arrangement|''security'' financial collateral arrangement]], which is a whole different thing.

This has profound — some might say a bit barmy — consequences when one considers the {{eureg|2015|2365|EC}} (also known, stiffly, as [[The Regulation on Transparency of Securities Financing Transactions and of Reuse]], more casually, as the [[securities financing transaction regulations]] and fondly as {{tag|SFTR}}) which, at Article 15, have some things to say about {{tag|title transfer}} collateral arrangements and what you have to tell your counterparty about them.

===CASS rules===