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Loans for Negotiable Margin Transactions |
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What is Loans for Negotiable Margin Transactions? |
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| Loans for negotiable margin transactions is a system which lends the necessary funds for securities companies to purchase stocks in negotiable margin transactions on behalf of its customer (3), receiving stock certificates purchased (1) or certain margin requirement (2) as collateral for loans.
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| In principle, loanable stock issues are those listed on stock exchange. (However, they can be limited to those we admit available.) Newly listed stocks can be accepted from the 1st day of its listing. |
| In principle, the due date of loan is the day following the lending date, but it can be extended to the deferment deadline for repayment of negotiable margin transactions for securities companies. |
| The interest rate on loans is determined individually between JSF and securities companies. |
| JSF receive stock certificates purchased in negotiable margin transactions and certain margin requirement as collateral for loans. Margin requirement can be substituted by a certain ratio of cash or by securities. |
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