Regarding the risk of loss - according to the Opes Prime documents -
Credit Risk:
"In the event of insolvency by Opes Prime then you will rank as an unsecured creditor IN RESPECT OF ANY EXCESS VALUE OF COLLATERAL you have lodged with Opes Prime over and above the value of any securities you have borrowed from Opes Prime or the excess of the value of securities you have loaned to Opes Prime and the cash that has been delivered to you as collateral"
i.e. You can stand to loose any lodged money or shares that you have placed in the margin facility regardless of whether you have drawn down on that facility. But not more than the excess lodged.
"You have an obligation to REPAY Opes Prime any amounts outstanding as a result of any securotoes lending transaction with us"
i.e. There is no obligation to repay Opes if you do not have "amounts outstanding" (ie non drawn down margin loan).
The thing I cant work out (had a quick read through the document and conditions) is what happens if your stock is sold and doesnt cover your margin loan (especially by a third party when Opes is insolvent. Is the loss just "written off" or can the third part (ie ANZ) pursue you ??
Note that there is a guarantee / Indemnity agreement - this does provide an avenue of funds recovery against the guarantor if someone else provided the guarantee.
J.
This is my understanding - others may have a differing view
