Page 148 - PRIAA Glossary

SECURITIES INDUSTRY AND FINANCIAL MARKETS ASSOCIATION
An association formed on November 1, 2006 after the merger of the Bond Market Association and the Securities Industry Association. This association represents all securities firms, banks and asset management companies in the United States and Hong Kong.
SECURITISATION
The practice of pooling assets such as debt and receivables into a separate entity and then issuing securities in tranches based on this securitisation pool.
SECURITY
A document that proves the ownership of stocks, bonds and other investments. Securities are tradable.
SECURITY INTEREST/PLEDGE
A type of collateral agreement in which the collateral provider creates a security interest in favour of the collateral receiver. The security interest allows the receiver to take legal possession of the collateral assets only in the event of the default of the collateral provider. Outside of a default, the legal ownership of the collateral assets remains with the provider, whilst the assets are physically held by the receiver.
SECURITY-BASED LENDING (SBL)
A type of transaction where the lender receives pre-agreed securities in order to mitigate risk. The borrower has to pay lower interest rates as he or she posts collateral. The higher risk of security-based over cash collateral is covered by haircuts from market value.
SEEDING
The process of inputting existing outstanding over-the- counter (OTC) derivative transactions into a trade repository or central clearing counterparty.
SEGREGATION
The act or process of separating the assets of different clients, as well as that of the custodian or financial institution
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