Segregation

KELER CCP offers segregation possibilities in line with Article 37 (9) of EMIR to its Clearing Members.

The following document includes the summary table of segregation possibilities and risks: 

 The dimensions of segregation are as follows:

• position management
• margin determination and collateral pledging
• settlement

KELER CCP ensures that Clearing Member own and principal positions are registered separately. In derivative clearing the principal positions are posted in the so-called individual principal position management accounts (PVE accounts), i.e. each principal transaction is registered individually.

KELER CCP registers Non-clearing Member positions separately, thus the Non-clearing Member own and principal positions are registered separately from the Clearing member own and principal positions. The Non-clearing Member principal trades, identically to the Clearing Member principal positions, are posted in the individual principal position management accounts.

In order to mitigate default risks, in line with segregation, KELER CCP calculates initial margin for the open positions arising from derivative clearing, and determines the following day’s variation margin. The initial margin and the variation margin are calculated separately for the positions in the Clearing Member own and the individual principal position management accounts.

The Clearing Member own and the omnibus principal collaterals are registered separately from the assets of KELER CCP and other Clearing Members.

In the interest of increased protection of clients (Non-clearing Members, Principals), KELER CCP offers so-called individual segregation (ISA - Individually Segregated Account). In this case KELER CCP registers separately from other client positions not only the trades of the client concerned, but the collateral instruments as well.

For individually segregated clients, the margin requirement for the positions of the client concerned is determined separately, and related collaterals are registered separately from the Clearing Member own and omnibus principal collaterals.

The client can request individual segregation from the Clearing Member; the Clearing Member is required to report to KELER CCP accordingly.

The individually segregated client can select a Back-up Clearing Member that, in case of final default by the original Clearing Member, is entitled to take over the non-defaulting individually segregated client and its collaterals. The client and the Back-up Clearing Member are required to make an agreement to use this function; the Back-up Clearing Member is required to inform KELER CCP on its client.