Direct clearing access for the buy side

Our direct clearing access suite for the buy side (ISA Direct) combines elements of a direct clearing membership and the traditional service relationship in client clearing - tailored specifically for the buy side. It opens up a new principal client relationship between buy side clients and the CCP, with the regular Clearing Member acting as a Clearing Agent, providing a variety of mandatory and optional service functions. ISA Direct comprises of the three access models

ISA Direct
ISA Direct Indemnified and
ISA Direct light

providing direct clearing access for OTC IRD and Repo.

New ISA Direct Indemnified - cleared repo for hedge funds

ISA Direct Clearing Model	Typical client	Scope	Markets
ISA Direct	Investment Funds (UCITS, AIFMD), Mutual Funds, Pension Funds, (Re)Insurance Undertakings	Own transactions	Repo/GC Pooling, OTC IRD
ISA Direct Indemnified	Hedge funds (AIF), Pension Funds	Own transactions	Repo/GC Pooling
ISA Direct Light	(Re)Insurance Undertakings, Corporate Clients	Own transactions	GC Pooling*

^{*Net cash provider at all times}

Key features

Direct buy-side membership via a Clearing Agent
The Clearing Agent covers the default fund contribution & default management obligation
The member maintains legal and beneficial collateral ownership
Reduced capital requirements
Improved buy-side conditions versus bilateral arrangements
Enhanced segregation & portability
Direct CCP access for cleared Repo, providing a larger liquidity pool

Your benefits at a glance

Higher capacity: Profit from high capital efficiencies and larger liquidity pools
Lower risk: Benefit from a strong risk management framework
Better economics: Profit from improved conditions
Increased balance sheet capacity: gain direct access to centrally cleared Repo and OTC IRS markets enabling you to directly raise cash and increase your balance sheet. As this is all done within the same ecosystem where the initial and variation margins are posted for other transactions, settlement failures and settlement fees are also reduced.