Accounting advanced dividend liquidating

Posted by / 30-Aug-2018 00:46

At the outset, each loan is collateralized at a predetermined margin.

Because the securities available for lending often greatly exceed the demand for them, inexperienced lenders may be tempted to ignore commonly recognized safeguards.

Bankruptcies of broker-dealers has heightened regulatory sensitivity to the potential for problems in this area.

Accordingly, we are providing the following discussion of guidelines and regulatory concerns.

For the purposes of these guidelines, the relevant capacities are: A lender institution offering securities from its own account is acting as principal.

A lender institution offering customers' securities on an undisclosed basis is also considered to be acting as principal.

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At a minimum, the system should produce daily reports showing which securities are available for lending, and which are currently lent, outstanding loans by borrower, outstanding loans by account, new loans, returns of loaned securities, and transactions by account.