The work of the Stock Exchange

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Monograph

Identifikator:: 1831284952

URN:: urn:nbn:de:zbw-retromon-225876

Document type:: Monograph

Author:: Meeker, James Edward http://d-nb.info/gnd/126597340

Title:: The work of the Stock Exchange

Edition:: Revised edition

Place of publication:: New York

Publisher:: The Ronald Press Company

Year of publication:: [1930]

Scope:: XVI, 720 Seiten; Illustrationen, Diagramme

Digitisation:: 2022

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Chapter XIII. Security delivieries, loans, and transfers

Collection:: Economics Books

366 THE WORK OF THE STOCK EXCHANGE the depository bank in favor of the lender. This check is then handed to the lender. So financially sound is the Corporation, with its large clearing fund always on deposit as a liquid and revolving fund, that its checks are not certified. The lender collects the proceeds of the check he receives, through the Bank Clearing House. If the lender desires a receipt for the securities he has de- livered to the Stock Clearing Corporation, the latter will sign to that effect on the return loan agreement form brought to the Stock Clearing Corporation by the lender. “Secured” and “Unsecured” Accommodation.—Mean- while, in the borrower’s cage at the Stock Clearing Corpora- tion, the securities constituting the collateral to the loan paid off are held for the borrower’s account, and he is debited with the amount of the principal and interest of the loan which the Stock Clearing Corporation has just paid to the lender on the borrower’s behalf. But it must be noticed that this debit item is not “unsecured accommodation,” as is the case with debits incurred by clearing members through receiving stock balances. For, to balance the debit of the borrower on the Stock Clearing Corporation’s books which was created when the latter paid off the loan to the lender, the Corporation holds the security col- lateral. Consequently, this debit item is “secured accommoda- tion” and is dealt with as such on the books of the Corporation. A separate sheet! in each cage contains the summarized ac- count of both the secured and unsecured accommodation employed by each member, as well as their offsetting credit items. Thus the Stock Clearing Corporation at all times can tell to a penny the exact financial position with it of the clear- ing member in question. The collateral received by the Stock Clearing Corporation is almost automatically acceptable to it. since the lender was willing to hold it overnight. The above operations take place during the morning in two shifts. If the borrower takes the return loan agreement to the 11 Qee Chanter XIV. p. 401.

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