The second part of our series on the OTC clearing mandate in Europe explores the variety of segregations models and why discussions on portability are largely academic.
Client fund segregation and portability are two of the most
important but complex areas of the OTC clearing mandate. With
uncertainty surrounding many CCP models, the full picture is
not yet clear. However, clients have to think now about what
Emir section 39 requires
CCPs to offer both omnibus and individually segregated
accounts. The latter accounts enable clients to keep all their
margin and positions in a separate account, whereas the omnibus
account comingles client funds.
On the face of it, Emir
prescribes two options. However, CCPs across Europe are
offering different models and different interpretations
resulting in excess of 12 different fund segregation models,
broadly based on omnibus and segregated accounts but also
mirroring the single, Lsoc model that exists in the US.
A plethora of
This article is available to subscribers and registered users
Please log in to continue reading.
Not yet registered? Take a free trial.
If you have already taken a free trial you
have ongoing access to the analysis section of FOW.com including this story.
Log in using your details below to read.
Already have an account? |