Glossary

Updated 17 October 2016

The Committee on Payments and Market Infrastructures (CPMI) provides this glossary of payments and market infrastructure terminology as a reference to the standard terms and definitions used in connection with payment, clearing, settlement and related arrangements. Current definitions are now shown alongside the previous ones. You can generate a PDF version of the glossary here.

re-hypothecation

A particular form of re-use (see re-use) of client assets by a financial intermediary. In a re-hypothecation transaction, securities that serve as collateral for a secured borrowing (eg a margin loan extended to a hedge fund) are further utilised by the intermediary making the loan.

When the reused collateral is in the form of securities that have been obtained as collateral by a party to a collateral agreement taking the legal form of a pledge, this practice is generally referred as re-hypothecation.

Updated: 1 Sep 2016

Source documents

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re-hypothecation

A particular form of re-use (see re-use) of client assets by a financial intermediary. In a re-hypothecation transaction, securities that serve as collateral for a secured borrowing (eg a margin loan extended to a hedge fund) are further utilised by the intermediary making the loan.

When the reused collateral is in the form of securities that have been obtained as collateral by a party to a collateral agreement taking the legal form of a pledge, this practice is generally referred as re-hypothecation.

Updated: 1 Sep 2016

Source documents

 Additional terms that are not included in the main glossary can be found in the previous version of the glossary.