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In these modern, [[Dematerialised|dematerialised]] but [[distributed ledger|not yet ''entirely'' decentralised]] times, the [[securities]] in a [[clearing system]] — that is, pretty much ''all'' securities — exist only as entries in a ledger maintained by the [[clearing system]]. The individual securities are no longer and have not been for a half-century or more, security-printed, physical things. <ref>See [[common depositary]] for more information.</ref> It may be we are moving “on-chain” but it has not happened yet, and if the speed at which lawyers have given up the legal vestiges of definitive physical securities is anything to go by, it will not happen for some time yet. Sorry, hodlers: I don’t make the rules. ANYWAY. | In these modern, [[Dematerialised|dematerialised]] but [[distributed ledger|not yet ''entirely'' decentralised]] times, the [[securities]] in a [[clearing system]] — that is, pretty much ''all'' securities — exist only as entries in a ledger maintained by the [[clearing system]]. The individual securities are no longer and have not been for a half-century or more, security-printed, physical things. <ref>See [[common depositary]] for more information.</ref> It may be we are moving “on-chain” but it has not happened yet, and if the speed at which lawyers have given up the legal vestiges of definitive physical securities is anything to go by, it will not happen for some time yet. Sorry, hodlers: I don’t make the rules. ANYWAY. | ||
In any case, like all good [[Intermediary|intermediaries]], the [[clearing system]] gets fees from participants for ''being'' a clearing system. As a kind of [[surety]] against non-payment of these fees, it keeps a [[lien]] on all global securities it holds. All this means is, if you haven’t paid your fees, you can’t have your securities back — conceptually a weird prospect, since '' | In any case, like all good [[Intermediary|intermediaries]], the [[clearing system]] gets fees from participants for ''being'' a clearing system. As a kind of [[surety]] against non-payment of these fees, it keeps a [[lien]] on all global securities it holds. All this means is, if you haven’t paid your fees, you can’t have your securities back — conceptually a weird prospect, since you ''can’t'' have your securities back, can you — there ''are'' no physical securities — but in practice, you can’t deal with them without paying your fees, and even more realistic practice, if you do, the clearing systems will just deduct their fees from your sale proceeds. all of this is entirely unobjectionable, entirely normal, should not ever offend or adversely affect anyone, but it is, by the lights of the law, a “security interest” and therefore is regarded as a necessary exception, to be mentioned for the avoidance of doubt and carved out in polite circles whenever one makes sweeping statements as to the lack of any encumbrances on one’s assets. | ||
Now all this sits a long way down the stack of turtles that makes up the modern [[Metaphysics|metaphysical]] financial system — almost so deep as to be beyond the paranoid articulations of an [[ISDA ninja]] — but, as you can see, not ''quite''. | Now all this sits a long way down the stack of turtles that makes up the modern [[Metaphysics|metaphysical]] financial system — almost so deep as to be beyond the paranoid articulations of an [[ISDA ninja]] — but, as you can see, not ''quite''. | ||
{{Csa title transfer vs pledge|{{{1}}}}} | {{Csa title transfer vs pledge|{{{1}}}}} | ||