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Default of a Disclosed Client operating under an Individually Segregated Account (ISA)

Default of a Disclosed Client operating under an Individually Segregated Account (ISA)

  • A Clearing Member is obliged to inform Eurex Clearing without undue delay of the default of any of its Disclosed Clients.
  • The Clearing Member can use the "Stop Button", to exclude entities admitted to trading on the Eurex Exchange or the Frankfurt Stock Exchange (DC Market Participants/Indirect Client Market Participants) from any trading and clearing activity.
  • Subsequently, the Clearing Member has to request in writing the suspension of the DC Market Participant (referencing Chapter I Part 1 Number 10.1 of the Clearing Conditions) or DC Market Participant With System Access/Basic DC (referencing Chapter I Part 1 Number 11.1 of the Clearing Conditions) from Eurex Clearing. Please click here for the Clearing Conditions.
  • If the Clearing Member has no direct access to the Disclosed Client's accounts, Eurex Clearing will transfer the respective positions into one of proprietary accounts of the Clearing Member, unless instructed otherwise by the Clearing Member. 
  • In the ISA Model, collateral securing the defaulted Disclosed Client’s positions has been deposited with Eurex Clearing by the Clearing Member. The Clearing Member has direct access to this collateral and the handling or liquidation of collateral solely depends on the Clearing Member's bilateral agreements with the respective Disclosed Client.
  • Once the Clearing Member has access to the defaulted Disclosed Client’s positions and collateral, all subsequent steps are in the Clearing Member's responsibility.