It will surprise many to learn that international banks do not limit their correspondent accounts in the United States to commercial banks. They also keep many at securities firms. In one of its recently issued proposed regulations, the U.S. Treasury Department cites several types of accounts that U.S. broker-dealers provide to foreign banks. Among them: * "omnibus accounts for trading on behalf of the foreign bank's customers on a fully disclosed or non-disclosed basis" * "prime brokerage accounts that consolidate trading done at a number of firms and lend stock" * "various forms of custody accounts for the foreign bank...
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