Yes
To give you bit more color – if a US investor enters into an Equity Swap agreement with broker “X”
Then the US investor pays cash to broker “X” and then “X” will buy the shares on his book and create a synthetic instrument (derivative) on that inventory. Then whatever the returns from that stock will be passed on by “X” to the US investor.
In the process “X” gets various fees.
At the exchange level, other investors will only see “X” as the buyer.
| Subscribe To Our Free Newsletter |
