opes prime anz custodian, page-8

  1. 195 Posts.
    It is starting to become very very obvious that Opes Prime was not really in the market for securities lending but margin lending. All the documents from the UK and the USA on the mechanics of share lending are very different from the Opes Prime/ANZ transaction/actions. The Opes Prime misleading and deceptive material also lend evidence that is was margin lending dressed up with a short circut AMSLA to get shares lent off the general public.

    It is standard practice globally for the lender to receive a 100% plus collateral margin for shares loaned. I cannot see one action of any of the parties including the ANZ that indicated that they were acting in a share lending arrangment. The agreement is some places may have transferrd title, but the actions in the transaction are so overwhelming of a margin lending arrangemnet. It is also starting to look as though Opes Prime were also a potential agent in the transaction based on the overseas models as their were only a few pricipal borrowers compared with a pool of 1200 lending clients shares.

    ANZ should not have been the custodian, not too sure even if they were now, another trustee/custodian should have been used to break the transaction and to provide safety to the lenders and borrowers. Massive conflicit of interest. I personal feel that no body knew how share lending worked including the regulators. This is a major stuff up and many small clients have been financial hurt as this model should never have got out to the public. It's limit should have been Asset Managers, Prime Brokers, Custodians and Hedge Funds, Its a little late now as everyone is trying the pick up the pieces of the glass ball from the floor.
 
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