Segregation/Portability

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

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

The dimensions of segregation are as follows:

• position management
• margin determination and collateral pledging
• settlement

With segregation KELER CCP ensures that Clearing Member own and principal positions are registered separately. In multilateral clearing the principal positions are posted in a so-called omnibus principal position management account, i.e. the transactions of individual principals are not registered one by one.

KELER CCP ensures the segregated management of Non-clearing Member positions, thus Non-clearing Member own and principal positions are registered separately from Clearing Member own and principal positions. Non-clearing Member principal trades, identically to the Clearing Member principal positions, are posted in the omnibus principal position management account.

In order to mitigate default risks, KELER CCP calculates initial margin, in line with segregation, for the open positions arising from multinet settlement. The daily margin requirement is calculated separately for the Clearing Member own and omnibus principal positions, within which the cash market negative variation margin is to be provided in collateralized form (collateral asset). Thus – opposed to the clearing of futures contracts – only the purchase price is settled, variation margin settlement is not made in accordance with securities clearing.

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

In the interest of increased protection of indirect clients (Non-clearing Members, principals), KELER CCP offers so-called individual segregation (ISA - Individually Segregated Account). In these accounts KELER CCP registers the positions of the given client separately from other client positions.

For individually segregated clients the margin requirement for the positions of the client concerned is determined separately, and related collateral is 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.