What is a pairoff transaction?

What is a pairoff transaction?

In a pairoff, there is no physical delivery of the securities; instead the settlement difference between the trades is calculated, and sent as a cash payment to the appropriate brokerage firm. A multi-way pairoff transaction can be used for all investment types, except currency and swap investments.

What is a pairoff and is it illegal?

This type of activity between brokerage firms is illegal as it is considered to fall under the umbrella of "market manipulation." As an example of a pairoff in action, consider Brokerage A that agrees to sell 100 shares of Company X to Brokerage B for $25,000.

What happens after my mortgage is paid off?

Once your mortgage is paid off, you’ll receive a number of documents from your lender that show your loan has been paid in full and that the bank no longer has a lien on your house. These papers are often called a mortgage release or mortgage satisfaction. A statement indicating that the loan’s balance has been paid in full

What is a partial pairoff?

In a partial pairoff, only part of the trade is paired-off, while the other part is either allocated into specified pools or paired-off later against the remaining open trade amount. The pairing-off and allocation process can occur at different intervals and over different days.