Secondary-Transfer Participation

An originator can retain an explicit economic interest in later transfers when the instrument terms create that interest. ENTITY does not impose it automatically.

Binding rule

The percentage, base, eligible transaction types, exclusions, jurisdiction, currency/settlement method and termination conditions should be fixed in the instrument/profile terms before the relevant transfer.

Settlement

A secondary transfer can generate a settlement allocation to the originator alongside the transfer consideration. The settlement record should identify the underlying trade and the term that authorized the allocation.

No hidden royalty

Absent explicit terms, secondary transfer lineage remains provenance only and creates no payment obligation.