opes and tricoms definition of ownership

  1. 195 Posts.
    This definition from Tricom is very different to the Opes Prime definition of the share ownership of shares lodged as collateral. You have to wonder if it was this spelt out and as black and white with the Opes Prime marketing material and website, how many clients would have entered into the arrangement in the first place, definately NOT myself.


    Share Ownership

    The margin lending facility operates through a Securities Lending agreement. This differs from many of the traditional margin lending facilities. Although we refer to 'lending' and 'borrowing' securities, the securities are actually transferred absolutely to Tricom, when lodged as margin cover or against the loan made. You do not retain any beneficial ownership in the shares you lend to Tricom under a Securities Lending facility.

    Ordinarily, Tricom will on-lend the securities it receives on a loan, participating in the extensive Securities Lending market in Australia. That Securities Lending market is not specifically regulated and you have no rights relating to the securities loan under any exchange market rules. Your rights under the loan arise solely under the terms of your account with Tricom and under general laws applicable to securities transactions. Tricom is only obliged to return to you equivalent securities when you repay the loan. You should read the terms carefully of a Securities Lending facility.

    Opes Prime

    What is equity financing?


    Equity financing at Opes Prime works somewhat like a margin loan. Under an equity financing arrangement an investor lends listed equities against cash, with the listed equities used as collateral. The cash may then be reinvested by the investor to leverage exposure to the market.
    The investor retains beneficial and economic ownership of the lent stock, including full exposure to dividends and corporate actions, as well as to market risk. The transaction may be reversed at any time.
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