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OSA

Omnibus Segregated Account (OSA)

The omnibus segregation model allows Clearing Members (CMs) to segregate client positions and collateral (for multiple clients) from the Clearing Member's  proprietary positions and collateral.

Eurex Clearing's omnibus segregation models are highly flexible and aim to address the requirements of our members and their clients. The benefits for clients of omnibus segregation include:

  • porting
  • return of collateral (return segregated from the CM's proprietary business) and
  • compliance with EMIR requirements.

  

Within the omnibus segregation arrangements, position segregation for clients can be supported.

  • The Elementary Clearing Model (ECM) is an omnibus client segregation model. It provides for the segregation of proprietary positions and assets of a Clearing Member from its client-related positions and assets. 
  • Our omnibus offering provides Clearing Members with three options for the segregation of their clients’ positions and assets.

Position segregation:

  • The position account structure within the ECM supports the segregation of positions of undisclosed direct customers (NOSA), Specified Client and NCM/Registered Customers from the positions of their (indirect) clients. The accounts maintained in relation to indirect clients are offered as NOSA or GOSA and are linked to the relevant position account reflecting the position of the direct client.

Asset segregation:

 

Elementary Clearing Model Value Based Allocation (ECM by value)

This is the standard setup for all Clearing Members. Proprietary and client transactions are segregated into different Transaction Accounts. The assets pledged in the collateral account at the central securities depository (CSD) are held in the name of the Clearing Member without relation to a specific Transaction Account . However, at the CCP level, the margin collateral provided is allocated to cover the proprietary transactions and the client transactions although one collateral pool is set up.

Elementary Clearing Model Asset Based Allocation (ECM by asset)

This setup segregates proprietary and client transactions into different Transaction Accounts as in the ECM by value. Additionally, the assets are provided by the Clearing Member to Eurex Clearing separately for own transactions of the Clearing Member and for client-related transactions of the Clearing Member. Two accounts at the CSD are required.

Elementary Clearing Model – CASS Transactions (ECM – CASS)

This setup is operationally and functionally the same as ECM by asset. Transactions designated as CASS Eligible Transactions are legally segregated from non-CASS Transactions and Eurex Clearing provides Clearing Members with trust acknowledgement letters in order to enable them to comply with their obligations under the CASS rules of the United Kingdom Financial Conduct Authority (FCA).

 
 

  • RC Own Accounts qualify as GOSA and are available for  Eurex Transactions and OTC Derivatives Transactions.
  • For GOSA a separate position account can be set up by the Clearing Member for the clearing of Eurex Transactions and OTC Derivatives Transactions reflecting the position of that specific client. Therefore margin requirement is calculated on a gross basis.
  • As each NOSA reflects positions of multiple clients the margin requirement calculation is performed on a net basis.
  • Collateral in an omnibus structure will always be shared across multiple clients and leads to fellow customer risk.
  • Collateral management options ensure the model is operationally simple to manage at the CCP.