collateral

(1) (in COLL 85) any form of security, guarantee or indemnity provided by way of security for the discharge of any liability arising from a transaction.
(2) (in72COBS72 and CASS) any of the following:
1. (a) an investment specified in articles 76 to 81 of the Regulated Activities Order; that is:
  1. (i) shares (article 76);
  2. (ii) debentures (article 77);
  3. (iia) an alternative debenture (article 77A);112
  4. (iii) government and public securities (article 78);
  5. (iv) warrants (article 79);
  6. (v) certificates representing certain securities (article 80);
  7. (vi) units (article 81); or
2. (b) money; or
3. (c) a commodity warrant (however title is recorded or evidenced);
which belongs to a client and which is held or controlled by the firm under the terms of a deposit, pledge, charge or other security arrangement.
(3) (in3162048INSPRU48 and SYSC47)34:34
1. (a) (in relation to any transaction) a mortgage, charge, pledge or other security interest or, as the context may require, an asset that is subject to a mortgage, charge, pledge or other security interest; and34
2. (b) (in relation to a stock lending, repo or derivative transaction only):34
  1. (i) a transfer of assets (other than by way of sale) subject to a right of the transferor to have transferred back to it the same, or equivalent, assets or, as the context may require, the assets so transferred by the original transferor; or34
  2. (ii) a letter of credit;34
  where the assets are transferred, or the letter of credit is issued, to secure the performance of the obligations of one of the parties to that transaction.34

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