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10 votes
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Client A lends securities to Client B. Trade settled in the market and Client B denies paying any collateral. In this scenario, what action should Client A take?

User Szier
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1 Answer

6 votes
6 votes

Answer:

Client A can claim all collateral and if Client B refuses to pay it can sue him.

Step-by-step explanation:

A collateral trade value is the value of a trading asset based on the fair market value or similar asset value. If a client is having collateral trade, this means trading will take place at fair market value. If any party denies to trade at market value then action can take place against them.

User Achwilko
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