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Quantitative Finance · Glossary

What is Trapped assets?

Definition 27.3 The Desk and the Firm · Chapter 27 — Crisis Management

Trapped assets are a firm’s cash or securities held by a counterparty that has failed or been placed in insolvency proceedings, which the firm cannot use until an administrator or trustee returns them, if ever: collateral posted, excess margin, securities rehypothecated (Book 1), or balances not segregated as the rules required.

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