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    FULCRA Financing Network provides margin borrowing and cash investing options for customers. Margin borrowing involves negotiating agreements, executing trades, financing positions, marking to market, and exiting strategies, but brings single counterparty risk. Cash investing allows buying, holding, and selling securities through separate instructions and settlement with multiple counterparties, but has limited options for illiquid positions or "rolling" investments. Both products involve tradeoffs between simplicity, convenience, risk, cost, and quality.

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    FULCRA Financing Network provides margin borrowing and cash investing options for customers. Margin borrowing involves negotiating agreements, executing trades, financing positions, marking to market, and exiting strategies, but brings single counterparty risk. Cash investing allows buying, holding, and selling securities through separate instructions and settlement with multiple counterparties, but has limited options for illiquid positions or "rolling" investments. Both products involve tradeoffs between simplicity, convenience, risk, cost, and quality.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    8 views1 page

    040c Eede

    Uploaded by

    krishnan1159
    FULCRA Financing Network provides margin borrowing and cash investing options for customers. Margin borrowing involves negotiating agreements, executing trades, financing positions, marking to market, and exiting strategies, but brings single counterparty risk. Cash investing allows buying, holding, and selling securities through separate instructions and settlement with multiple counterparties, but has limited options for illiquid positions or "rolling" investments. Both products involve tradeoffs between simplicity, convenience, risk, cost, and quality.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 1

    FULCRA Financing Network Customer Utility Matrix

    Margin Borrower
    Negotiate Margin Agreements Productivity Open Prime Borkerage Account Execute Trades Finance Positions Mark to Market Exit Strategy

    Simplicity
    Long Period Negotiations Difficult to transition relationship More regulatory lending constraints predicted

    Convenience
    Lengthy legal agreement

    Risk

    Single Counterparty Risk; Re-hypothecated collateral (encumbered and unemcumbered)

    Image / Quality

    Cost
    Governed by Prime Broker

    Margin Finance Competitive Rates only validated by other PB relationships or anecdotal research

    Cash Investor
    Source Investment Opportunities Productivity
    Separate Custody Instruction / Settlement

    Enter into agreements

    Buy Securities

    Hold Securities

    Sell Securities

    Securities Mature

    Simplicity
    Multiple Counterparties

    Convenience
    No Access to invest in Margin Finance

    May be illiquid position or require multiple market sources

    Limited options to "roll" investment

    Risk
    Limited regulatory-driven options

    Image / Quality

    Cost
    Low Interest Rates - seeking yield

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