Segregation Models

The main reason for segregation is the separation of Collaterals in case of a Clearing Member default. Eurex Clearing offers a variety of Segregation Models to address the needs of different client types.

There are three types of accounts:

  • Net Omnibus Segregated Account (NOSA)
  • Gross Omnibus Segregated Account (GOSA) 
  • Individual Segregated Account (ISA)

Screenshot Segregation Model2.0













The main criteria to decide on the required level of segregation are: 

  • fellow customer risk sharing or not
  • separate Collateral Pool desired or not
  • Margin efficiencies net or gross

Clients should contact their Key Account Managers or client.services@eurex.com and clarify, which Segregation Models fits best to their needs. For more details please refer to: Client Asset Protection.

FAQ

1. Which Segregation Model enables greatest Margin efficiencies for clients?

  • Net Omnibus Segregated Accounts have the highest Margin efficiency stemming from the fact that positions of several clients are commingled and netted within one account. 
  • However, this Segregation Model also incurs the highest fellow customer risk. 

2. Which Segregation Model minimizes fellow customer risk for clients?

  • Individually Segregated Accounts have no fellow customer risk as both the positions and the assets of the client are separated from both Clearing Member's assets and of his other clients.
  • Gross Omnibus Segregated Accounts offer only a limited protection from fellow customer risk as the Collateral Pool is shared with other clients.

3. What happens to clients´ positions and Collateral in case a Clearing Member defaults?

  • Client Asset Protection (CAP) under EMIR service of Eurex offers the possibility for clients to port to a Replacement Clearing Member and continue clearing activities even after their Clearing Member defaults.
  • Service is available for both: 
    • Omnibus Segregation
    • Individual Segregation 
  • For more information please visit our homepage: Porting under EMIR.
  • Please contact: Group Client Services, Trading & Clearing and Cash Market
  • Porting to a Replacement ‘Futures Commission Merchant’ (FCM) Clearing Member is also possible for 'Legally Segregated, Operationally Commingled' (LSOC) US-Clients. 
  • For more details please refer to our homepage: Porting under LSOC.

4. Is there a special account set-up for Fund Managers?

  • The Fund Manager (Authorized Manager) solution allows a fund specific position account set-up in an operationally efficient manner and is available for all Segregation Models of Eurex.
  • In general, all position accounts are set-up to separate each relevant fund which is disclosed to the Central Counterparty (CCP). 
  • The Clearing Member can optionally select for its Fund Manager a set-up of multiple transaction accounts in a single risk netting unit.
  • For more details please contact your Key Account Manger or client.services@eurex.com.  

5. What is the ISA Direct membership model?

  • ISA Direct Model 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.
  • Please contact: Fixed Income, Funding & Financing Sales
    Frankfurt: Phone: +49-69-211-138 59
    London: Phone: +44-20-78 62-72 76
    E-Mail: FixedIncome.Sales@eurex.com

For more details please refer to our homepage:  ISA Direct.

Supporting Documents

If you require further information, please contact us at client.services@eurex.com.