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The startup essentially offers short-term loans based on the collateral of customers' personal valuables (like that PlayStation 2 or early Zune you still have lying around somewhere).
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The trustee and the CME Group, the exchange where MF Global conducted most of its business, have already returned the majority of collateral that customers had posted to support trading positions.
Mirant, which owns power plants in 14 states, has had to post increasing amounts of collateral with its customers since its credit rating was cut below investment grade last year by Standard & Poor's.
The rule was called for in the Dodd-Frank financial oversight law, but efforts to boost protection and segregation of customer collateral have gained momentum following the collapse of futures brokerage MF Global in October.
Using special permission from regulators, CME was planning to take the unusual step of transferring MF Global's customer positions without returning all the collateral the customers originally posted, according to a person briefed on the matter.
Merrill is keeping a close eye on the collateral its customers take against loans, he says.
The number of customers per slaughterhouse ranges from one to over one thousand customers, with a median of ten customers.
If one occurs by both the clearing member and one or more of its customers, the clearinghouse can only collect collateral of the defaulting member, or its own resources.
In my cabinets is all the collateral of the collections.
Lack of customer base?
One teller even accepted a gold watch as collateral from a customer.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com