Hello all, I'm doing a literature/source review for my PhD, and am wondering if someone could assist me or provide me a pinpoint source for the following question:
For customer accounts containing securities (or containing products that themselves contain or have values based on a mix of securities), what is a) the leveraging multiple allowed for hypothecation by broker-dealers, and b) what is the leveraging multiple allowed for fractional-reserve lending/investing by banks?
I tried reading into some SEC rules but they seem rather difficult to parse. It seems like broker-dealer hypothecation can be up to 1.02x of leverage and bank fractional-reserve lending/investing can be up to 10x.
Is this correct?
Thanks in advance!
