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ISA

Individual Segregated Account (ISA)

The ISA structure ensures that specific assets provided to Eurex Clearing are protected against the default of another market participant.

  • Individual segregation ensures that clients have no risk of mutualisation with either the proprietary business of the Clearing Member or other clients of the Clearing Member. ISA clients have their own segregated position and collateral accounts at the CCP. The ISA model also segregates excess collateral at the level of the CCP.

            

  • The model provides the highest likelihood of porting. Should there be a Clearing Member default, ISA Clients can choose to port immediately to a Replacement Clearing Member or become an Interim Participant, directly facing Eurex Clearing for a limited period until a Replacement Clearing Member is identified and accepts the port.
  • Alternatively, ISA clients can elect to close-out and directly receive their close-out proceeds and remaining collateral back.
  • The ISA client and the Clearing Member can agree on direct delivery and redelivery of Eligible Margin Assets to Eurex Clearing which avoids transit risk for the ISA Client when providing collateral to cover the margin requirement calculated by the CCP.
  • Collateral management  options ensure the model is operationally simple to manage at the CCP.
  • In Eurex Clearing’s view, this model benefits from a 2 percent risk weight for trade and collateral exposure, other models are subject to higher risk weights.