opes prime collateral margin

  1. 195 Posts.
    It is my understanding that a collteral margin should have been paid to the stock lenders in the AMSLA.

    I am not too sure having a drawable credit line on lodged securities is the same as securities lending as per the AMSLA. It may be viewed in the context of the business relationship as a share mortgage, given the representations from Opes Prime indicated the client maintained beneficial and economic ownership of their lodged shares under the Equity Financing Structure.

    My gut feeling is that ANZ must be a little worried about whether the AMSLA used with the Opes Prime business will be viewed and interpreted in the right context of the business transactions it was intended to cover.

    I am no expert, but this seems to be the main issue that needs to be resolved. The courts will determine how the AMSLA should be used. This AMSLA agreement should never have been able to be used below senior market players given the very complex nature and risk of the AMSLA contracts.
 
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