RE: Company response on IM accountancy treatment9 Sep 2024 08:42
It's secured against the inventory, which though held by the client is owned by the stock company, because of true sale.
In the event of failure to repurchase, the stock company uses remarketers to sell for less than the full value, which is why CH Trading hub need to provide 15% of the total value, so they take the loss on reselling and not the bank who get their 85% back.