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ISA for SCs

Individual Segregated Account (ISA) for SCs

The model provides individual segregation without any contractual obligations of the client towards Eurex Clearing.

  • Clearing Members can opt for the individual segregation of Eurex Transactions and OTC Derivatives Transactions relating to an SC. UK-based Clearing Members have the option to clear ICM SC Transactions in accordance with the rules of the Client Asset Sourcebook (CASS Rules) of the United Kingdom Financial Conduct Authority.
  • An SC is not required to enter into a clearing agreement with its Clearing Member and Eurex Clearing when opting for ISA. Eurex Clearing treats the Clearing Member as its principal counterparty who remains responsible for all transactions cleared for the respective ICM SC with Eurex Clearing.
  • Eurex Clearing establishes and maintains accounts for the Clearing Member per each ICM SC, on which only transactions, cash amounts and margins (i.e. cash collateral and/or securities) are held for the account of the ICM SC including its indirect clients
  • Excess collateral of an ICM SC is segregated at the level of the CCP. 

            

  • Should there be a Clearing Member default, ICM SCs can choose to port immediately to a Replacement Clearing Member.
  • Alternatively, ICM SCs can elect to close-out and directly receive their close-out proceeds and remaining collateral back.
  • Collateral management options ensure the model is operationally simple to manage at the CCP.