AFAIK this is US-only between financial institutions authorised to issue / accept these guarantees by the SEC; it has no effect, legal or otherwise, outside of the US.
AFAIK this is US-only between financial institutions authorised to issue / accept these guarantees by the SEC; it has no effect, legal or otherwise, outside of the US.
mathepac this is completely off topic but are you the same mathepac who comments very expertly on an other site about the nature of negative swap spreads?
It may optionally be required / requested by the agent transferring physical documents (e.g. share certificates) from one party to another, but it is not a legal requirement AFAIK. It protects the agent, the vendor and the purchaser as the guarantee seller (there is usually a price for the service) issues them with a limited indemnity, assuming the bulk of the financial risk in return for the fee. AFAIK its a US / Canada thing only (open to correction, it may have spread).
You might find [broken link removed] article useful, just FYI, no connection with it.