Collateral, Margin, and Set-off. If you deposit collateral as security with us for Transactions you enter, the way in which it will be treated will vary according to the type of Transaction and where it is traded. There could be significant differences in the treatment of your collateral, depending on whether you are trading on a recognised or designated investment exchange, with the rules of that exchange (and any associated clearing house) applying, or trading off-exchange. Collateral may lose its identity as your Property once dealings on your behalf are undertaken, particularly where you transfer the title to such collateral and “right to use” provisions apply (see Appendix 3). Even if your dealings should ultimately prove profitable, you may not get back the same Assets which you deposited, and may have to accept equivalent assets. In addition to the rights of GIS pursuant to the Client Agreement, any Collateral or other assets of any nature furnished to or deposited with GIS under this Agreement may be deposited with or pledged, re-pledged or charged to or otherwise placed as collateral with a third party, such as an intermediate broker, clearing organisation or exchange upon such terms as GIS may in its sole discretion agree with such third party in respect of its, the Client’s or any other person’s obligations and liabilities to such third party. The Client hereby consents to GIS pledging, re-pledging or charging Securities held for the Client by, or on behalf of, GIS. To the extent that the Client has any Right in relation to the Securities, such Right will terminate when GIS pledges, re-pledges or charges the Securities. The Client hereby acknowledges that it is aware that in the event of an insolvency of GIS, it will only have a personal claim against GIS in relation to the Securities.
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Samples: Professional Clients and Eligible Counterparty Agreement, Professional Client and Eligible Counterparty Agreement, Professional Client and Eligible Counterparty Agreement
