Dear friends, I'm a new bond reserch assistant, here's a hard question for me, hope somebody could kindly help me! you know the third-party collateral management services offered by custodians to manage the collateralisation process in security transactions. And usually in bond market,custodians act as lending agents in the transaction. However, if the agent-lending process is too sophisticated to operate, when you have over 10 clients in both two parts and it's difficult to ask every client to sign agreement in each transaction, could the custodian use TRUST to accelarate the process? If it is ok, where can I find a successful case? Thanks!

Seaflower,

I'm not so sure you are going to find many folks here that are that familiar with securities lending activities - sorry - and maybe I'm wrong on that.

But before I would venture down that road, I think I would consult legal counsel that has experience in securities AND fiduciary law.

In you have in-house counsel I'd start with that person. If they don't have the expertise, I'm sure they will be able to refer to somebody that does.

I would first thank you for your advice! I have consulted a legal consel. China has strict rules for lending security,insititutional investors are forbidden from lending security each other, and that's why I am looking for another path as Trust by custodian, we may found a trust pool or something like that. I need a country case like this, a successful one. I believe this is only a transitive way to a free trade of security lending.

Seaflower