Segregation

Portability

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

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

2016 02 16 Multinet Segregation Models Options and Risks.pdf
Letöltés (397 KB) 

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 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 this requirement the cash market negative variation margin is to be provided in collateralized form.

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

In the interest of increased protection of clients (Non-clearing Members, principal) 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 KELER CCP on individual segregation.

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 report KELER CCP on its client.