Automatic collateralization

Within a regular contractual relationship between bank and customer, the compensation of possible short-term gaps in the settlement of the purchase price for newly acquired securities by the fact that – securities offered by the customer are used accordingly (collateral stocks) or – the bank holds the securities acquired on behalf of the customer but not yet paid for in custody for the time being (collateral flows), without special agreements being required as a rule (normally without special contractual agreement being required).

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/