Fully Paid Stock Lending 3rd Party Collateral Administration

Overview of our FPLCA Service

We work with Broker Dealer Clients through the following process to ensure each step enables compliance.

• Appointment of 17a-4 as 3rd Party Collateral Administrator per the Tri-Party Collateral Administration Agreement and Control Agreement
• Monitoring of Client Collateral
• • Monitor the Collateral held by Client for benefit of lenders
  • Maintain a ledger reflecting the Collateral attributable to each Lender
  • Maintain Lender Information and Daily Collateral Schedule
  • 17a-4 Administrator reconciles the Collateral Schedule with the Custody Account Statement
  • 17a-4 Administrator notifies Client if additional Collateral is required or if excess Collateral is available
  • 17a-4 Administrator notifies Client if additional Lender Information is missing or omitted
• Monitoring Client’s Financial Condition
• • Client shall furnish Administrator with copies of financial statements and net capital computations
  • Initiation of any case or proceeding insolvency event

Our 3^rd Party administration ensures the Collateral provided by Client complies with the requirements of Rule 15c3-3 and confirms successfully Collateral delivery of equal or greater value to that of the loaned securities.

17a-4’s Fully Paid Lending Collateral Administration service offers Clients industry-leading compliance monitoring and reporting tools that enable FPL programs to successfully comply with SEA Rule 15c3-3.