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Amongst the obligations set out by EMIR, clearing brokers are required to offer clients a choice between individual client accounts or omnibus client accounts; to disclose publicly the levels of protection and costs associated with different levels of segregation; and to describe the main legal implications of different levels of segregation.
The document provides background to clearing, addressing issues such as margin posting and porting; gives information about the difference between individual client accounts and omnibus client account; explains how this impacts on the clearing process and details some of the other factors that might affect the level of client margin protection, such as title transfer versus security interest; sets out some of the main insolvency considerations under English law. Part Two of the document provides an overview of the main variations on the different levels of segregation that CCPs currently offer.
FOA/ISDA-Clearing Member Disclosure Document