Back Stop

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Back Stop

In an issue of new stock, a guarantee made by an investor, usually an institution, to a publicly-traded company that it will buy the remainder of an issue if the company is unable to place it all with other investors. For example, an institution may announce that it will provide 100% back stop to a company's new issue up to $50 million. If the company only raises $35 million by placing the security with other investors, the institution will buy the remaining $15 million worth of stock.
References in periodicals archive ?
For the DUP the backstop could present an existential threat, while for the Brexiteers it would hobble what they see as an opportunity for a more prosperous life outside the bloc.
"Today, the prime minister and I have agreed on the joint legally binding instrument relating to the withdrawal agreement, this instrument provides meaningful clarifications and legal guarantees on the nature of the backstop [...] It complements the withdrawal agreement without reopening", Juncker added.
Offering warm support for his Irish guest, Tusk said the European Union will not gamble with peace" on the Irish border by removing the backstop from the deal.I hope that tomorrow we will hear from Prime Minister May a realistic suggestion on how to end the impasse," he said.
In January, MPs overwhelmingly rejected the withdrawal deal that the government had negotiated with the EU, backing an amendment for the government to seek "alternative arrangements" to the backstop.
May conceded that her government hadn't settled on a way to replace the backstop, telling lawmakers that "there are a number of proposals for how that could be done." May said measures under consideration included a unilateral exit mechanism from the backstop for Britain, a time limit to the backstop and "mutual recognition and trusted trader schemes." The EU says the backstop is an insurance policy and as such can't have a time limit or a get-out clause.
Asked repeatedly what could replace the backstop in the deal he said: "There are a number of options, there are issues in terms of having time limits, issues in terms of exit clauses, issues in terms of technology and this will be the nature of the negotiation with the EU in the coming days."
The backstop would also ensure that no "tariffs, quotas, rules of origin or customs processes" will apply to UK-EU trade.
With proprietary access to the 2,200 alternative investment managers and 6,900 funds tracked by BarclayHedge, Backstop will be able to offer institutional clients a unique combination of technology, tools, services, and data to help optimise their research management and due diligence workflows.
Irish Prime Minister Leo Varadkar said he was willing to explore backstop solutions so long as they did not allow the UK to unilaterally walk away from an open border.
It is incumbent on the UK that it no longer postpone coming forward with its own, workable and legally operative proposal for a backstop. The BSG stresses that without a credible, genuine and operational backstop, it will be impossible for the European Parliament to give its consent to the WA.
The Tsubaki BRUS backstops are designed to replace the Falk[R] BIF model external high- speed backstops.
These steps are seen as interlinked because the banking capital rules are expected to reduce bank risk, which would allow more sharing of risk among euro zone countries in the form of a common backstop to prop up the sector's rescue facility, known as Single Resolution Fund.