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Trading Bank Guarantees

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Trading bank guarantees.

It is not possible to trade bank guarantees, they are non-transferable and non-divisible.

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A Bank Guarantee is a non-tradeable instrument and therefore carries no Cusip or ISIN identification code. A Bank Guarantee cannot be utilised to enter into, guarantee, or underwrite any form of trade or investment program as it is a non-transferable and non-divisible instrument, and as such has no value for trading purposes.

For more information on Cusip and ISIN, please got our Format of a bank guarantee page.

A Bank Guarantee however, can be used to raise cash, such as loans or lines of credit, (also referred to as Credit Guarantee Facilities). The Beneficiary, should they so desire, would be able to use the advance from their banker to invest in a trading opportunity, a structured investment, or utilised for project finance.

For more information on raising loans and lines of credit, please go to Leasing a bank guarantee , Monetising a bank guarantee.

Again, any individual, company or institution who purports that they are able to use a Bank Guarantee for trading purposes, should be reported to the relevant Financial Service Authority.

If you have any further questions on this or any other subject related to bank guarantees, then you can search our frequently asked questions where you will hopefully find the answer you are looking for. Alternatively you can ask us a question and we will answer it for you.

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