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)
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 firstname.lastname@example.org and clarify, which Segregation Models fits best to their needs. For more details please refer to: Client Asset Protection.
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 email@example.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
For more details please refer to our homepage: ISA Direct.
If you require further information, please contact us at firstname.lastname@example.org.