Existing clearing members are able to easily extend their current clearing licences to include the ISA Direct Model. If they are already an OTC IRD or Repo Clearing Member then they may also become a Clearing Agent for those markets by following the below steps.
Extending your existing licence
You will have to sign a new clearing agreement with Eurex Clearing and the Basic Clearing Member (BCM).
If you are pledging securities on behalf of the BCM then you will have to sign a new pledge agreement designed for the new ISA direct model.
It is the Clearing Agent's responsibility to post the default fund to Eurex Clearing on behalf of the Basic Clearing Member (the client).
The Default Fund requirement is determined by the highest single amount of the following components:
Operational set up
The clearing agent can opt for various operational set ups.
The following requirements or business functions can be fulfilled either by the Basic Clearing Member (BCM) or the Clearing Agent (CA):
Whatever operational set up you decide upon between you and your Basic Clearing Member, you will agree the set up using the Clearing Agent Limitation Notice.