Overview on the Consequences of an Insolvency under Eurex Clearing s Clearing Models

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "Overview on the Consequences of an Insolvency under Eurex Clearing s Clearing Models"

Transcription

1 Quick Reference Guide Insolvency Overview Overview on the Consequences of an Insolvency under Eurex Clearing s Clearing Models Contents 1. Introduction Disclaimer Clearing Models Introduction Legal Basis for Collateral Transfer Calculation of the Difference Claim per Standard Agreement Clearing Member Default Proprietary Business Client Business Omnibus Segregated Accounts by Value Omnibus Segregated Accounts by Asset Omnibus Segregated Accounts under CASS Multiple Omnibus Segregated Accounts Individual Segregated Accounts Client Insolvency Insolvency of Undisclosed Clients Insolvency of Disclosed Clients NCMs RCs Insolvency of Individually Segregated Clients Eurex Clearing Insolvency...11 Appendix...14 Definitions

2 1. Introduction The purpose of this document is to explain the clearing models of Eurex Clearing and the general course of action that Eurex Clearing may take following a party s insolvency, where porting is unsuccessful. These generic descriptions assume that insolvency proceedings or similar proceedings under the laws of the jurisdiction where the relevant client, Clearing Member or Eurex Clearing has its registered seat are commenced by the competent national authorities (so-called Insolvency Termination Event), but it will not consider any Termination Event(s) for such a decision. Descriptions of the Termination Events can be found at Part I Chapter I Number of the Clearing Conditions. This document will also not consider the Default Management Procedure (DMP) per se, in terms of the liquidation, hedging and auction processes for example. Further information of the DMP itself can be found at: Disclaimer The document only represents the views of Eurex Clearing and it does not purport to and should not be considered to be legal advice or an explanation to all relevant issues and considerations that may be relevant in relation to the clearing of transactions with Eurex Clearing, including relevant enforceability, regulatory, tax, accounting, insolvency, or any other aspect. It is hoped however, that this document will provide responses to the questions raised by the Derivatives Clearing Committee in relation to the segregation, porting options and general insolvency proceedings, which may occur. There is a great deal of work being completed on recovery and resolution plans and the courts generally retain authority to decide upon insolvency proceedings. Eurex Clearing does not assume any responsibility for the use of this document and given insolvency law is a complex matter, recommends that all readers seek legal advice. 2

3 1.2 Clearing Models Introduction The clearing models at Eurex Clearing satisfy the segregation and porting requirements contained within the European Market Infrastructure Regulation (EMIR), properly titled the Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties (CCPs) and trade repositories (TRs). Eurex Clearing offers both omnibus segregated accounts (OSAs) and individually segregated accounts (ISAs). Eurex Clearing also allows CMs based in the United Kingdom (UK) to comply with the UK Client Asset sourcebook (CASS). It is important to note that Eurex Clearing s rules and regulations use different naming conventions than general market terminology. Market terminology is associated with the Eurex Clearing Models as follows: Market Standard Terminology OSA OSA under CASS Multiple OSA ISA Eurex Clearing naming conventions Either Elementary Clearing Model (ECM) by Value or by Asset Net Omnibus Clearing Model (NOCM) Multiple Omnibus Segregated Accounts (MOSA) Individual Clearing Model (ICM) For further general information on each of the clearing models and the process for porting, please see the Information Memoranda which can be found on the Forms part of the Eurex Clearing website, and through the following links (please copy and paste the links in your web browser): ECM _Member_Services_+_Admission/Clearing/INFORMATION_MEMORAND UM_Client_Asset_Protection_- _Elementary_Clearing_Model_(ECM)_(only_English_version_available).p ECM porting NOCM NOCM porting ICM ICM porting ICM Interim Participa tion df _Member_Services_+_Admission/Clearing/INFORMATION_MEMORAND UM_Client_Asset_Protection_Client_Porting_in_the_Elementary_Clearin g_model_%28ecm%29.pdf _Member_Services_+_Admission/Clearing/INFORMATION_MEMORAND UM_Client_Asset_Protection_- _Net_Omnibus_Clearing_Model_%28NOCM%29.pdf _Member_Services_+_Admission/Clearing/INFORMATION_MEMORAND UM_Client_Asset_Protection_- _Client_Porting_in_the_Net_Omnibus_Clearing_Model_%28NOCM%29_ %28only_English_version_available%29.pdf _Member_Services_+_Admission/Clearing/Information_Memorandum_- _Client_Asset_Protection_Individual_Clearing_Model.pdf _Member_Services_+_Admission/Clearing/Information_Memorandum- Client_Asset_Protection- Client_Parting_in_the_individual_Clearing_Model_%28ICM%29.pdf _Member_Services_+_Admission/Clearing/Information_Memorandum_Cli ent_asset_protection_interim_participation.pdf 3

4 Eurex Clearing does not charge any fees for the clearing model chosen to either the Clearing Member (CM) or client. The high-level account structure is as follows: For further information please see the Quick Reference Guide to Client Clearing & Collateral Management which can be found on the Members Section of the Eurex Clearing website or the EMIR Article 39(7) disclosure document. 4

5 1.3 Legal Basis for Collateral Transfer Cash margin collateral transferred to Eurex Clearing is always achieved on a full- title transfer basis. Non-cash margin collateral can either be provided to Eurex Clearing by way of: a security interest collateral arrangement (German-law pledge) for proprietary and omnibus segregation; or a title transfer collateral arrangement for ISAs. 2. Calculation of the Difference Claim per Standard Agreement This document describes the calculation process for a Clearing Member insolvency, a client insolvency and Eurex Clearing s insolvency. A small selection of definitions are included in the Appendix of this document, but it is worth understanding how Eurex Clearing calculates and covers each Difference Claim to create a single netted close-out amount between the parties. Each Clearing Member will have a number of Standard Agreements with Eurex Clearing (for an OSA, OSA under CASS, or ISA) and the Difference Claim represents the single close-out claim arising after the insolvency of a party to the relevant Standard Agreement in accordance with the following logic for margin collateral: Margin collateral transferred under title transfer arrangements (all cash collateral under any clearing model and non-cash collateral under the ISA) is included in the Difference Claim; and Margin collateral transferred under a pledge arrangement (i.e. non-cash margin collateral under the OSAs) is not included in the Difference Claim, but rather is held to cover the Difference Claim. For example: Clearing Member insolvency, proprietary business: As the proprietary business is cleared under the Elementary Clearing Model, Eurex Clearing would calculate the Difference Claim under the Elementary Proprietary Standard Agreement by valuing the Clearing Member s positions and cash collateral (including any FX), and will then use pledged collateral to the extent required to cover the Difference Claim. Any excess collateral will be released back to the CM to the extent possible in the form it was received. Clearing Member insolvency, individual segregated (ISA) client: Eurex Clearing would calculate the Difference Claim (assuming porting has failed) under the relevant Clearing Agreement (Appendix 1 of the Clearing Conditions in case of the ICM-CCD or Appendix 3 of the Clearing Conditions in case of the ICM-ECD), and would include all cash and non-cash collateral in the calculation of that Difference Claim. Any excess collateral would be directly returned to the individual client. 3. Clearing Member Default This section assumes that the Clearing Member has become insolvent and it describes the process for each clearing model. This document does not further consider the Termination Event of a Clearing Member, but simply assumes that this has occurred. 5

6 3.1 Proprietary Business A Clearing Member s proprietary business is governed by the Elementary Proprietary Standard Agreement, which can be found in Appendix 1 of the Clearing Conditions, titled: Clearing Agreement between Eurex Clearing AG and a Clearing Member. Please note that this agreement may also constitute separate client Standard Agreements under the Individual Clearing Model and the Net Omnibus Clearing Model, as explained further below. When an Insolvency Termination Event occurs, Eurex Clearing will close-out that Member s positions and will liquidate its collateral to the extent required to settle the Difference Claim. Following close-out and the determination of the Difference Claim, if the Clearing Member has excess collateral left at the CCP, then Eurex Clearing will return any cash collateral back to the insolvency estate of the Clearing Member and release any pledged non-cash collateral. As noted above, cash is included in the Difference Claim and Eurex Clearing has discretion over which non-cash collateral is used to settle the Difference Claim. Where there is insufficient margin collateral to settle the Difference Claim, then Eurex Clearing will utilise the lines of defence to settle it. Any returned or released collateral will fall within the general insolvency estate of the Clearing Member and can be used to satisfy claims of the creditors of the insolvent Clearing Member. 3.2 Client Business Proprietary transactions and margin assets are entirely ring-fenced from the Clearing Member s client clearing activity. Eurex Clearing maintains separate position accounts for undisclosed clients (the socalled A Accounts) and at least two position accounts per each disclosed client (Non- Clearing Member (NCMs) and Registered Customer (RCs)), for the direct client s proprietary business and the client s client business. For each A Account and each Non-Clearing Member and/or Registered Customer-account Eurex Clearing calculates a net initial margin requirement and calls the Clearing Member for the aggregate sum of those margin requirements. Clearing Members may maintain either undisclosed net margin omnibus accounts, or disclosed client accounts which are gross margined, from the Clearing Member s perspective. For example, undisclosed clients would usually have offsetting positions within an A Account, so whilst the Clearing Member would have called each client on a gross basis, the Clearing Member will post margin on a net basis to Eurex Clearing per each A Account. In contrast, because NCMs and RCs have their own position accounts, margining from the perspective of the Clearing Member is on a gross basis because the Clearing Member is required to call at a minimum and post to Eurex Clearing, that client s initial margin requirement. As this is omnibus client business, Clearing Members are not required to post excess margin to CCPs. These net and gross margin accounts can either be combined in a standard omnibus pool, or they may be further segregated into separate Multiple OSA pools. Individual segregated accounts are always held gross from a Clearing Members perspective (and follows the logic set out above, gross position keeping and net initial margin per client), however EMIR requires that the Clearing Member posts and excess margin to a CCP. 6

7 3.2.1 Omnibus Segregated Accounts by Value Under the Elementary Clearing Model, the Clearing Member can choose between two allocation options: (a) the allocation by value (described in the following) and (b) the allocation by asset (described under item below). The OSA by value model is the minimum level of segregation required by EMIR, which provides a single collateral pool for both proprietary and client positions. The value of the delivered collateral is automatically allocated by Eurex Clearing to the proprietary and client business on a pro rata basis (as a percentage) depending on the relevant margin requirements for the proprietary or client business Nevertheless, the OSA by value provides for the segregation and allocation of the margin securities booked to the relevant CSD account on a by asset basis in the books and records of Eurex Clearing. (i) Porting If a Clearing Member becomes insolvent and all clients, both undisclosed and disclosed, combined under a specific omnibus collateral pool agree to port to the same Transferee Clearing Member by 1:00 pm Frankfurt-time the business day following the Termination Date, then Eurex Clearing will port the OSA by value positions and collateral to the Transferee Clearing Member in the evening of the business day following the day of default provided that all of the Porting Requirements enlisted under Chapter I Part 2 Number of the Clearing Conditions are fulfilled by such time. This includes that disclosed clients have confirmed to Eurex Clearing that they will enter into new clearing documentation with the Transferee Clearing Member within five business days. Additionally, porting will only be successful where the Transferee Clearing Member (i) provides a written confirmation that it will accept the transfer, (ii) confirms that it can act on behalf of all clients and has provided a list of all transactions between the defaulting Clearing Member and its undisclosed clients (unless the Transferee Clearing Member was designated as back-up Clearing Member prior to the insolvency of the Transferor Clearing Member); and (iii) has confirmed it will meet any margin requirements. If, for any reason, Eurex Clearing cannot transfer the non-cash margin collateral of the insolvent Clearing Member then it reserves the right to liquidate the securities and transfer cash. In practice, porting may be unlikely because all clients may be unable to agree to a single Transferee Clearing Member within the porting timelines. Additionally, an omnibus pool may contain an A account on a net omnibus basis. This means that the defaulting Clearing Member s insolvency proceedings will trap the difference between the gross called from clients and the net margin posted from the insolvent CM to Eurex Clearing), such that the replacement Clearing Member would have to cover this collateral shortfall. Please note that porting cannot be offered in every jurisdiction due to specific restrictions under local law. On the Eurex Clearing website you can find a list of all eligible jurisdictions for ECM porting. (ii) Termination scenarios (in case porting does not occur) Negative Difference Claim If porting is unsuccessful and there is insufficient margin collateral to cover the close out of the positions under the relevant Elementary Omnibus Standard Agreement, a 7

8 negative Difference Claim is calculated (meaning that Eurex Clearing is the creditor of the Difference Claim) and Eurex Clearing is entitled to realise the pledged securities. If the value of the pledged securities are also not sufficient to cover the Difference Claim, Eurex Clearing will use any remaining proprietary excess collateral to settle the client Difference Claim under the relevant Elementary Omnibus Standard Agreement. If that was similarly insufficient, the lines of defence would be utilised to the extent required to cover the loss, starting with the Clearing Member s Default Fund contribution. Positive Difference Claim If a positive Difference Claim is calculated (meaning that Eurex Clearing is the debtor of the Difference Claim), the excess cash collateral can neither be used to cover any proprietary or other client Difference Claim shortfall. Where there are disclosed and undisclosed clients in one collateral pool, Eurex Clearing will return the excess cash collateral to the insolvency administrator of the (insolvent) Clearing Member for the account of all disclosed and undisclosed clients. This is in line with Article 48 para 7 of EMIR, which only requires a CCP to return any excess collateral to those clients when they are known to the CCP. In case the clients are not known to the CCP, the CCP shall return the excess collateral to the insolvency administrator of the (insolvent) Clearing Member for the account of such clients. Any pledged non-cash collateral will be released so that the insolvency administrator of the (insolvent) Clearing Member can freely dispose over such securities Omnibus Segregated Accounts by Asset The OSA by asset is no different from the OSA by value apart from the fact that the OSA by asset uses two separate CSD accounts for proprietary and client business. Any securities collateral provided by the Clearing Member for both, proprietary and client business must be booked to the relevant securities account at the CSD by the Clearing Member. Instead of an automatic allocation as under OSA by value, the Clearing Member decides on which securities shall serve as collateral for the relevant collateral pool Omnibus Segregated Accounts under CASS The Omnibus Segregated Accounts under CASS allows Clearing Members based in the United Kingdom (UK) to comply with the UK Client Asset sourcebook (CASS). Operationally, the OSA under CASS is similar to OSA by asset, but it provides a different protection mechanism under UK regulation. The OSA under CASS means that the collateral can be protected by the statutory client money trust and securities protected by agreement and the custody rules at the Clearing Member level. OSA under CASS therefore offers a mechanism for Clearing Members to shield certain clients from falling within their general estate if they were to default. (i) Porting The same timelines and requirements for porting as under the OSA by value and OSA by asset apply. If porting is successful, the segregated positions and related collateral will be transferred to a transferee Clearing Member who also offers client money protection to its clients. 8

9 (ii) Termination Negative Difference Claim (Eurex Clearing is the creditor) Where porting is unsuccessful the same process is followed for a negative Difference Claim as the OSAs described above. Positive Difference Claim(Eurex Clearing is the debtor) Where there is a positive Difference Claim, then generally - the client money will be returned to the Insolvency Practitioner of the (insolvent) Clearing Member. The Insolvency Practitioner will combine all client money into the single pool and then distribute it to all client money protected clients based upon their entitlements on a pari passu basis. Where a Clearing Member has created a specific sub-pool for net omnibus client money clearing with Eurex Clearing, then that pool of collateral would be maintained separately from the general pool and we would consider that to be a Multiple Omnibus Segregated Account which is described below Multiple Omnibus Segregated Accounts Under the OSA by asset and the OSA under CASS, the Clearing Member has the option to establish separate Elementary Omnibus Standard Agreements for certain groups of clients by assigning certain transaction accounts for client transactions to a specific Elementary Omnibus Standard Agreement. For those groups of transaction accounts a separate netting set is established with the consequence that a separate Difference Claim will be calculated in case of an insolvency of the Clearing Member. The multiple omnibus segregated accounts are not a separate clearing model, such option rather provides the possibility to achieve a further segregation between certain types of clients. For example, a group of companies may wish to be segregated in a multiple OSA, or funds of an asset manager may wish to be segregated in their own pool to reduce fellow customer risk to known fellow customers (funds) of that asset manager. Accordingly, the porting and termination rules for OSA by asset or OSA under CASS apply. Where the CM has maintained a specific sub-pool of client money to protect the clients, then that client money would not be combined with the Clearing Member s general client money pool. Rather the specific sub-pool will be used only to satisfy the claims of those clients who were a beneficiary of such pool Individual Segregated Accounts The ISA allows a client to become fully segregated from the proprietary business (which is also the case under the OSA and the OSA under CASS) and all other client business of its Clearing Member, protecting both the client s positions and actual collateral, including any excess. (i) Porting In summary, the porting timeline is as follows: Upon the occurrence of a Termination Date, the ICM Client may elect by giving notice to Eurex Clearing: 9

10 (i) (ii) (iii) to re-establish the terminated Covered Transactions as an interim participant (IP Election); to immediately re-establish the terminated client transactions with a Replacement Clearing Member; or not to re-establish the terminated client transactions; in each case by 21:00 hours Frankfurt time on the Valuation Date. The Valuation Date is the day on which insolvency proceedings are commenced over the assets of the Clearing member prior to 17:23 hours Frankfurt time. In case insolvency proceedings are commenced after 17:23 hours Frankfurt time, the Valuation Date will be the next business day. Accordingly, if insolvency occurs before 17:23 hours Frankfurt time, the ICM Clients have until 21:00 Frankfurt time on the day of insolvency to make their nomination, or if the insolvency occurs after 17:23 hours Frankfurt time, the ICM Clients have until 21:00 hours Frankfurt time the next business day. (ii) Termination scenarios (in case no porting occurs) Negative Difference Claim (Eurex Clearing is the creditor) As with the omnibus models, if porting is unsuccessful and a negative Difference Claim is calculated (i.e. there is insufficient margin collateral to cover the cost of closing out of the positions), then Eurex Clearing will use any proprietary excess margin collateral remaining following the insolvency of the Clearing Member to settle the Difference Claim. If that was similarly insufficient, the lines of defence would be utilised to the extent required to cover the loss. Positive Difference Claim (Eurex Clearing is the debtor) If a positive Difference Claim is calculated, any excess margin collateral cannot be used to cover any proprietary or other client Difference Claim shortfall. The client s actual excess cash and/or non-cash margin collateral will be directly returned to the ICM Client following the conclusion of the default management process. 3. Client Insolvency This section describes the general process for handling a client default. Eurex Clearing operates on a principal-to-principal legal basis and therefore only handles its Clearing Member defaults. Where a client of a Clearing Member defaults, the Clearing Member would be expected to manage the client default as outlined below. 3.1 Insolvency of Undisclosed Clients If insolvency proceedings are commenced over the assets of a Clearing Member s undisclosed client, the Clearing Member would be responsible for the handling of that client s positions and collateral. As Eurex Clearing has no relationship to the client, the Clearing Member is not required to inform Eurex Clearing of the default. This applies to the OSA and the OSA under CASS. Please note that the Clearing Member can not choose the ISA for undisclosed clients. 10

11 3.2 Insolvency of Disclosed Clients As disclosed clients (NCMs or RCs) are known to Eurex Clearing and enter into a Clearing Agreement with their Clearing Member and Eurex Clearing, the client s insolvency is partially regulated in the Clearing Conditions NCMs As NCMs are trading participants, Eurex Clearing specifies certain matters under Chapter I Part 1 Number 10 of the Clearing Conditions for the use of the stop-button etc., but generally, those specific provisions are not considered here. If an NCM has been excluded from trading, with prior notification to Eurex Clearing, the Clearing Member may close the NCM s positions or transfer them to another Clearing Member. The NCM must be notified of the exclusion from trading and the NCM positions will be transferred to the Clearing Member s proprietary account unless otherwise requested RCs The insolvency of a Registered Customer is covered by Chapter I Part 1 Number 11 of the Clearing Conditions and such provisions generally follow the process for an NCM, whilst recognising that an RC is not a trading participant of Eurex. 3.3 Insolvency of Individually Segregated Clients Because of the additional protections provided to individually segregated clients, there are specific provisions dealing with the insolvency of the individually segregated client. The Clearing Member is obliged to notify Eurex Clearing if some or all of the Transactions with an ICM Client have been accelerated, terminated or otherwise closed-out as a consequence of an insolvency. The termination of the corresponding transactions between the Clearing Member and the ICM Client will not automatically lead to a termination of the corresponding Transactions between Eurex Clearing and the Clearing Member. Instead the Transactions between Eurex Clearing and the Clearing Member will automatically be novated and re-entered between Eurex Clearing and the Clearing Member under the Elementary Clearing Model Provisions. The novated Transactions will be booked on an Own Account or a Customer Account of the Clearing Member and from then on constitute Own Transactions or Elementary Omnibus Transactions of the Clearing Member. Margin allocated to the novated Transactions will be transferred accordingly. In the case of cash margin collateral, the transfer occurs by way of a novation of the respective Redelivery Claim, in the case of non-cash margin collateral, Eurex Clearing will instruct the relevant CSD to transfer the securities from the segregated margin account to the relevant pledged securities account of the Clearing Member. 4. Eurex Clearing Insolvency This section describes the consequences of the occurrence of insolvency of Eurex Clearing, whilst assuming the Clearing Members remain solvent. 11

12 The relevant provisions providing for the applicable close-out mechanism are set out under Chapter I Part 1 Number 9 of the Clearing Conditions which apply to all Clearing Models provided by Eurex Clearing. In case of the occurrence of an Insolvency Event in respect of Eurex Clearing, Chapter I Part 1 Number 9.1 of the Clearing Conditions provides for an automatic expiry of all current or future primary obligations arising from any Transactions and all Redelivery Claims under the relevant Standard Agreements between Eurex Clearing and the relevant Clearing Member. An Insolvency Event will occur upon the filing of the petition for the commencement of insolvency proceedings (Insolvenzantrag) in respect of Eurex Clearing under German law which can only be filed by the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht - BaFin). The expired obligations and claims will be replaced by a Difference Claim for each Standard Agreement entered into between Eurex Clearing and the Clearing Member. 4.1 OSA / OSA under CASS As already stated above, the securities pledged to Eurex Clearing by the Clearing Member will not be considered in the calculation of the Difference Claim. Rather, the pledged securities serve as protection for a potential Difference Claim which Eurex Clearing may have against the relevant CM. Depending on the result of the calculation, the pledges are either realised or released by the insolvency administrator of Eurex Clearing. Positive Difference Claim (Eurex Clearing is the debtor) If the calculation leads to a Difference Claim of the Clearing Member against Eurex Clearing, the Clearing Member has to register such Difference Claim with the German insolvency court responsible for the insolvency proceedings over the assets of Eurex Clearing. Registered claims will be satisfied from the proceeds of the liquidation of Eurex Clearing 's assets. In case of collateral in form of securities pledged to Eurex Clearing, the security purpose of the pledged securities expires with the consequence that all pledges expire as well. Upon the expiry of the pledges, the Clearing Member is entitled to freely dispose over such securities. Negative Difference Claim (Eurex Clearing is the creditor) If there is a Difference Claim of Eurex Clearing against the Clearing Member, Eurex Clearing is still protected by the margin collateral in the form of securities pledged to Eurex Clearing. The pledge as such is not affected by the insolvency of Eurex Clearing. The insolvency administrator of Eurex Clearing is still entitled to enforce such pledges in accordance with their security purposes. However, as long as the relevant Clearing Member fulfils the Difference Claim, there is no need for Eurex Clearing to enforce the pledges. Once the Difference Claim is fulfilled by the Clearing Member, the pledges expire automatically. 4.2 ISA Under the Individual Clearing Model, any Eligible Margin Asset in the form of cash and securities needs to be delivered by transferring all rights and title, with the consequence that all collateral will be considered in the calculation of the Difference Claim. 12

13 Positive Difference Claim (Eurex Clearing is the debtor) If the calculation results in a Difference Claim of the Clearing Member against Eurex Clearing, the Clearing Member has to register such Difference Claim with the insolvency court. Negative Difference Claim (Eurex Clearing is the creditor) If Eurex Clearing has a Difference Claim against the Clearing member, Eurex Clearing's insolvency administrator will demand the payment from the relevant Clearing Member. 13

14 Appendix Definitions Default management procedure (DMP): Chapter I, Part 1, Number 7.5: Eurex Clearing AG maintains a default management process to reduce the risks following a default by a Clearing Member and the occurrence of a Termination Event or Insolvency Termination Event (as defined in and 7.2.2) resulting in a Termination and the calculation of one or more Difference Claims Difference Claim: Chapter I Part 1 Number 7.3.1: Upon the occurrence of a Termination Date, the Difference Claim shall be determined for each Standard Agreement by way of combining (Saldieren) the Single Transaction Amounts of all Transactions under such Standard Agreement terminated as of the Termination Time and the Aggregate Value of the Redelivery Claims under such Standard Agreement, all as defined below. The final amount of the Difference Claim resulting from such combination shall (i), if it is a positive figure for the party entitled to value the Difference Claim, be owed to it by the other party, or (ii), if it is a negative figure for the party entitled to value the Difference Claim, be owed by it to the other party. Standard Agreement: A Standard Agreement represents a framework agreement between the relevant parties which governs clearing of the relevant products, licenses, and under which a Difference Claim is created. I.e. there will be a Standard Agreement for OSAs and ISAs and each will have a segregated pool of positions and margin collateral, which, when closed out, will result in a Difference Claim being determined. Termination Event: A Termination Event is an event which is set out at Chapter I, Part 1, Number (1) (12). Valuation Date The Valuation Day is the date on which the Calculation Party (usually Eurex Clearing) determines the value of the Difference Claim. This shall be the day of default where porting is successful for the ICM or at the end of the Default Management Process in all other situations. 14

Q u i c k R e f e r e n c e G u i d e

Q u i c k R e f e r e n c e G u i d e Q u i c k R e f e r e n c e G u i d e Client clearing: segregation, porting and collateral management Version 2, December 2014 Contents 1 Introduction... 3 2 Clearing models introduction... 3 3 Definitions

More information

SKANDINAVISKA ENSKILDA BANKEN AB (PUBL) EMIR DISCLOSURE

SKANDINAVISKA ENSKILDA BANKEN AB (PUBL) EMIR DISCLOSURE SKANDINAVISKA ENSKILDA BANKEN AB (PUBL) EMIR DISCLOSURE 1 INTRODUCTION 1.1 Under Article 39(5) of the European Market Infrastructure Regulation ( EMIR ), EU Central Counterparties ( CCPs ) and their clearing

More information

J.P. Morgan Securities plc EMIR disclosure

J.P. Morgan Securities plc EMIR disclosure J.P. Morgan Securities plc EMIR disclosure 1. INTRODUCTION 1.1 As a client of J.P. Morgan Securities plc ( JPMS plc ), you are required to confirm the type of account that you would like JPMS plc to maintain

More information

NASDAQ OMX Clearing. Investor Risks. 1 Introduction. 2 Background. Version 1.1/5.11.13

NASDAQ OMX Clearing. Investor Risks. 1 Introduction. 2 Background. Version 1.1/5.11.13 Version 1.1/5.11.13 NASDAQ OMX Clearing Investor Risks 1 Introduction This document describes the levels of protection and the costs associated with the different levels of segregation offered by, and

More information

ASX Client Clearing Service for derivatives

ASX Client Clearing Service for derivatives ASX Client Clearing Service for derivatives Fact Sheet Introduction to the two clearing account types available for ASX 24 Exchange Traded Derivatives and OTC Interest Rate Derivatives Key terms used in

More information

In depth A look at current financial reporting issues

In depth A look at current financial reporting issues In depth A look at current financial reporting issues inform.pwc.com July 2014 No. INT2014-03 What s inside: Background 1 Summary of questions 2 Detailed questions 3 Offsetting financial instruments for

More information

LCH.Clearnet Account Structures under EMIR for LCH.Clearnet Limited & SA

LCH.Clearnet Account Structures under EMIR for LCH.Clearnet Limited & SA LCH.Clearnet Account Structures under EMIR for LCH.Clearnet Limited & SA SUBJECT TO REGULATORY APPROVAL Version 2 Last updated 28/01/2014 Introduction The way in which CCPs manage members and clients assets

More information

ICE Clear Europe. Disclosure Statement pursuant to Article 39(7) of EMIR

ICE Clear Europe. Disclosure Statement pursuant to Article 39(7) of EMIR ICE Clear Europe Disclosure Statement pursuant to Article 39(7) of EMIR Version 1.1 1 Summary of changes Version Date Author Comments 1.0 July 2015 Mark Woodward Original published version. 1.1 Mark Woodward

More information

LCH.CLEARNET LIMITED DEFAULT RULES

LCH.CLEARNET LIMITED DEFAULT RULES LCH.CLEARNET LIMITED DEFAULT RULES CONTENTS Rule Page DEFAULT RULES... 1 Reduction of Losses on Default... 13 Terms on which Contribution is held... 15 Application of Defaulter's Contribution and Certification

More information

Eurex Clearing AG Assessment of Eurex Clearing AG s compliance against the CPSS-IOSCO PFMIs and the associated disclosure framework

Eurex Clearing AG Assessment of Eurex Clearing AG s compliance against the CPSS-IOSCO PFMIs and the associated disclosure framework CPSS-IOSCO Principles for financial market infrastructures (PFMI) and disclosure framework associated to the PFMIs page 2 Disclaimer Eurex Clearing AG (Eurex Clearing) has made every effort to ensure that

More information

Pricing Schedule for Exchange Traded Derivatives Clearing Services on EU CCPs

Pricing Schedule for Exchange Traded Derivatives Clearing Services on EU CCPs Pricing Schedule for Exchange Traded Derivatives Clearing Services on EU CCPs 1. Introduction The European Regulation on OTC Derivatives, Central Counterparties and Trade Repositories ( EMIR ) will impose

More information

Reform of the Registry, Clearing and Settlement System

Reform of the Registry, Clearing and Settlement System Reform of the Registry, Clearing and Settlement System 13 May 2013 CONTENTS 0. INTRODUCTION I. MAIN CHANGES INTRODUCED BY THE REFORM II. CENTRAL COUNTERPARTY (CCP) FOR EQUITIES 1. INTRODUCTION 1.1. Integration

More information

ESMA Discussion Paper on Draft Technical Standards for the Regulation on improving securities settlement in the European Union and on central

ESMA Discussion Paper on Draft Technical Standards for the Regulation on improving securities settlement in the European Union and on central E u r e x C l e a r i n g R e s p o n s e t o ESMA Discussion Paper on Draft Technical Standards for the Regulation on improving securities settlement in the European Union and on central securities depositories

More information

Disclosure Pricing for Clearing of Equity Derivatives, Cash Equity and Fixed Income

Disclosure Pricing for Clearing of Equity Derivatives, Cash Equity and Fixed Income EMIR INTESA SANPAOLO S.p.A. Disclosure Pricing for Clearing of Equity Derivatives, Cash Equity and Fixed Income January 2015 INTESA SANPAOLO Contents Background... 2 Purpose of the document... 2 Pricing

More information

Client Asset Requirements. Under S.I No.60 of 2007 European Communities (Markets in Financial Instruments) Regulations 2007

Client Asset Requirements. Under S.I No.60 of 2007 European Communities (Markets in Financial Instruments) Regulations 2007 Client Asset Requirements Under S.I No.60 of 2007 European Communities (Markets in Financial Instruments) Regulations 2007 Instructions Paper November 2007 1 Contents 1 Contents 2 Introduction 1 2.1 Scope

More information

Exchange Specific General Terms and Conditions of Business concerning SIX Swiss Exchange Ltd

Exchange Specific General Terms and Conditions of Business concerning SIX Swiss Exchange Ltd Exchange Specific General Terms and Conditions of Business concerning SIX Swiss Exchange Ltd Exchange Specific GTCB SIX Swiss Exchange November 2009 1 15 Table of contents 1 Scope 3 2 Definitions 3 3 Securities

More information

Reform of the Registry, Clearing and Settlement System

Reform of the Registry, Clearing and Settlement System Reform of the Registry, Clearing and Settlement System 24 September 2014 CONTENTS 0. INTRODUCTION I. MAIN CHANGES INTRODUCED BY THE REFORM II. CENTRAL COUNTERPARTY (CCP) FOR EQUITIES 1. INTRODUCTION 1.1.

More information

A high-level guideline for changes due to EMIR and the NBO

A high-level guideline for changes due to EMIR and the NBO Regulatory impact on Members high-level guideline for changes due to EMIR and the NO Overview The revised National ank Ordinance (NO) in Switzerland and the European Market Infrastructure Regulation (EMIR)

More information

Final European Standards for Derivatives Collateralisation

Final European Standards for Derivatives Collateralisation Client Alert 17 March 2016 Final European Standards for Derivatives Collateralisation On 8 March 2016, the three European Supervisory Authorities (ESAs) 1 published their final draft regulatory technical

More information

Nasdaq Dubai Operating Procedures Clearing, Settlement and Risk management for securities. For more information. nasdaqdubai.com

Nasdaq Dubai Operating Procedures Clearing, Settlement and Risk management for securities. For more information. nasdaqdubai.com Nasdaq Dubai Operating Procedures Clearing, Settlement and Risk management for securities For more information Nasdaq Dubai Ltd Level 7 The Exchange Building No 5 DIFC PO Box 53536 Dubai UAE +971 4 305

More information

International Swaps and Derivatives Association, Inc. COLLATERAL LAW REFORM GROUP UNITED KINGDOM COUNTRY REPORT

International Swaps and Derivatives Association, Inc. COLLATERAL LAW REFORM GROUP UNITED KINGDOM COUNTRY REPORT International Swaps and Derivatives Association, Inc. COLLATERAL LAW REFORM GROUP UNITED KINGDOM COUNTRY REPORT Supplement to Collateral Arrangements in the European Financial Markets: The Need for National

More information

Pricing Guidelines for Listed Products and OTC Derivatives Clearing Services offered by UBS EMIR Articles 38(1) and 39(7)

Pricing Guidelines for Listed Products and OTC Derivatives Clearing Services offered by UBS EMIR Articles 38(1) and 39(7) Pricing Guidelines for Listed Products and OTC Derivatives Clearing Services offered by UBS EMIR Articles 38(1) and 39(7) 1. Introduction The European Market Infrastructure Regulation (EMIR) of the European

More information

23 rd September. CASS Seminar, London. Issues arising out of CP13/5 a legal perspective. Ash Saluja 23 September 2013.

23 rd September. CASS Seminar, London. Issues arising out of CP13/5 a legal perspective. Ash Saluja 23 September 2013. Issues arising out of CP13/5 a legal perspective Ash Saluja 23 September 2013 Scope and timing Revisions to rules on client assets for investment businesses i.e.: CASS 6 (custody assets) CASS 7 (client

More information

STATUTORY INSTRUMENTS. CENTRAL BANK (SUPERVISION AND ENFORCEMENT) ACT 2013 (SECTION 48(1)) CLIENT ASSET REGULATIONS 2015 FOR INVESTMENT FIRMS

STATUTORY INSTRUMENTS. CENTRAL BANK (SUPERVISION AND ENFORCEMENT) ACT 2013 (SECTION 48(1)) CLIENT ASSET REGULATIONS 2015 FOR INVESTMENT FIRMS STATUTORY INSTRUMENTS. S.I. No. )04, of 2015 CENTRAL BANK (SUPERVISION AND ENFORCEMENT) ACT 2013 (SECTION 48(1)) CLIENT ASSET REGULATIONS 2015 FOR INVESTMENT FIRMS S.I. No. (74 of 2015 CENTRAL BANK (SUPERVISION

More information

EquityClear OTC CFD Model Service Description

EquityClear OTC CFD Model Service Description EquityClear OTC CFD Model Service Description Not for distribution Issued : 30/10/2013 Table of Contents 1. INTRODUCTION...4 1.1 Service overview - execution...4 1.2 Readership...5 2. SERVICE OVERVIEW...6

More information

Chapter 8 Clearing House and Performance Bonds

Chapter 8 Clearing House and Performance Bonds 800. CLEARING HOUSE Chapter 8 Clearing House and Performance Bonds The Exchange shall utilize the services of the CME Clearing House in order to protect market participants and to maintain the integrity

More information

CHAPTER 8 CLEARING HOUSE AND PERFORMANCE BONDS GENERAL

CHAPTER 8 CLEARING HOUSE AND PERFORMANCE BONDS GENERAL 800. CLEARING HOUSE 801. MANAGEMENT CHAPTER 8 CLEARING HOUSE AND PERFORMANCE BONDS GENERAL 802. PROTECTION OF CLEARING HOUSE 802.A. Default by Clearing Member or Other Participating Exchanges 802.B. Satisfaction

More information

General Clearing Provisions

General Clearing Provisions Page 1 ******************************************************************************************** CHAPTERS I AND 2 AS WELL AS ANNEXES 1, 9 AND 10 WILL BE AMENDED. AMENDMENTS ARE MARKED AS FOLLOWS: INSERTIONS

More information

Cover note to the consultative report

Cover note to the consultative report IOSCO BN01-11 10 March 2011 Cover note to the consultative report 1 Overview of the report The consultative report on Principles for Financial Market Infrastructures (consultative report) was prepared

More information

Eurex04e Clearing Conditions for Eurex Clearing AG As of 02.02.2015 Page 1

Eurex04e Clearing Conditions for Eurex Clearing AG As of 02.02.2015 Page 1 Page 1 ******************************************************************************************** APPENDICES 1, 8 AND 9 WILL BE AMENDED. AMENDMENTS ARE MARKED AS FOLLOWS: INSERTIONS ARE UNDERLINED. DELETIONS

More information

Financial Stability Standards Implementation

Financial Stability Standards Implementation Financial Stability Standards Implementation The Way Forward Market Consultation Document Cash Equity Market Account Segregation and Portability, and Rescheduled Settlements A. Executive Summary In December

More information

EMIR Review Report no.3 Review on the segregation and portability requirements

EMIR Review Report no.3 Review on the segregation and portability requirements EMIR Review Report no.3 Review on the segregation and portability requirements 13 August 2015 ESMA/2015/1253 Table of Contents 1 Executive Summary... 3 2 Introduction... 4 3 General regulatory framework

More information

SECTION 14 RISK MANAGEMENT

SECTION 14 RISK MANAGEMENT SECTION 14 RISK MANAGEMENT 14.1 POSITION LIMITS DERIVATIVES MARKET CONTRACTS AND DERIVATIVES CCP CONTRACTS... 3 14.1.1 ASX Clear may prescribe Position Limits... 3 14.1.2 Breach of Position Limits... 4

More information

Client Access to OTC Derivatives Clearing Nordic Capital Markets Conference 21 November 11

Client Access to OTC Derivatives Clearing Nordic Capital Markets Conference 21 November 11 Access to OTC Derivatives Clearing Nordic Capital Markets Conference 21 November 11 OTC Interest Rate Derivatives Market Segmentation Notional, USD bn 450,000 400,000 350,000 300,000 250,000 200,000 150,000

More information

EUROPEAN UNION ACCOUNTING RULE 17 REVENUE FROM NON-EXCHANGE TRANSACTIONS (TAXES AND TRANSFERS)

EUROPEAN UNION ACCOUNTING RULE 17 REVENUE FROM NON-EXCHANGE TRANSACTIONS (TAXES AND TRANSFERS) EUROPEAN UNION ACCOUNTING RULE 17 REVENUE FROM NON-EXCHANGE TRANSACTIONS (TAXES AND TRANSFERS) Page 2 of 26 I N D E X 1. Introduction... 3 2. Objective... 3 3. Scope... 3 4. Definitions... 4 5. Non-exchange

More information

Guide to Debt Collection in Scotland

Guide to Debt Collection in Scotland There are a variety of debt collection procedures available in Scotland many of which are similar to those used elsewhere in the UK. The usual demand letters and statements will be issued but if the debtor

More information

INFORMATION FOR OBSERVERS

INFORMATION FOR OBSERVERS 30 Cannon Street, London EC4M 6XH, United Kingdom Tel: +44 (0)20 7246 6410 Fax: +44 (0)20 7246 6411 E-mail: iasb@iasb.org Website: www.iasb.org International Accounting Standards Board This document is

More information

STATEMENT OF INSOLVENCY PRACTICE A RECEIVER S RESPONSIBILITY FOR THE MORTGAGOR S RECORDS. Contents. Introduction 1-3. Scope 4-7.

STATEMENT OF INSOLVENCY PRACTICE A RECEIVER S RESPONSIBILITY FOR THE MORTGAGOR S RECORDS. Contents. Introduction 1-3. Scope 4-7. S1B STATEMENT OF INSOLVENCY PRACTICE A RECEIVER S RESPONSIBILITY FOR THE MORTGAGOR S RECORDS Contents Paragraphs Introduction 1-3 Scope 4-7 Principles 8 Compliance Standards On appointment 9-10 During

More information

Basel Committee on Banking Supervision. Frequently Asked Questions on Basel III s January 2013 Liquidity Coverage Ratio framework

Basel Committee on Banking Supervision. Frequently Asked Questions on Basel III s January 2013 Liquidity Coverage Ratio framework Basel Committee on Banking Supervision Frequently Asked Questions on Basel III s January 2013 Liquidity Coverage Ratio framework April 2014 This publication is available on the BIS website (www.bis.org).

More information

Terms and Conditions

Terms and Conditions Terms and Conditions 1. TABLE OF CONTENTS 1. TABLE OF CONTENTS 2. SERVICES OFFERED TO THE CUSTOMER 3. EXECUTION-ONLY ARRANGEMENTS 4. YOUR INVESTMENT OBJECTIVES 5. RESTRICTIONS ON TYPES OF INVESTMENT 6.

More information

DMM FX CONTRACTS FOR DIFFERENCE PRODUCT DISCLOSURE STATEMENT

DMM FX CONTRACTS FOR DIFFERENCE PRODUCT DISCLOSURE STATEMENT DMM FX CONTRACTS FOR DIFFERENCE PRODUCT DISCLOSURE STATEMENT DMM FX Australia Pty Limited ACN 160 659 290 AFSL 437734 Issue Date: 7 November 2015 Version 2.0 Table of Contents Section 1 Important Information

More information

Basel Committee on Banking Supervision. Capital requirements for bank exposures to central counterparties

Basel Committee on Banking Supervision. Capital requirements for bank exposures to central counterparties Basel Committee on Banking Supervision Capital requirements for bank exposures to central counterparties July 2012 This publication is available on the BIS website (www.bis.org). Bank for International

More information

CENTRAL BANK OF MALTA

CENTRAL BANK OF MALTA CENTRAL BANK OF MALTA DIRECTIVE NO 2 in terms of the CENTRAL BANK OF MALTA ACT (CAP. 204) PAYMENT AND SECURITIES SETTLEMENT SYSTEMS Ref: CBM/02 DIRECTIVE NO 2 PAYMENT AND SECURITIES SETTLEMENT SYSTEMS

More information

Service Overview 1 June 2012

Service Overview 1 June 2012 Service Overview 1 June 2012 Contents 1.0 Preface 3 1.1 About European Central Counterparty Limited 3 2.0 Introduction 4 2.1 About European Central Counterparty Limited 4 2.2 Benefits of participation

More information

BANK GUARANTEE PHASE OUT DESCRIPTION

BANK GUARANTEE PHASE OUT DESCRIPTION BANK GUARANTEE PHASE OUT DESCRIPTION Date: 2015-05-15 Ver 1.0 Contents 1 Executive summary... 3 2 Document data... 6 2.1 Legal Disclaimer... 6 2.2 Version history... 6 2.3 Glossary and Definitions... 6

More information

Protection Of Customer Funds Frequently Asked Questions

Protection Of Customer Funds Frequently Asked Questions Version 2.0 revised June 2012 Futures Industry Association, June 2012 1 The Protection of Customer Funds: Frequently Asked Questions 1 was prepared by members of the FIA Law and Compliance Division. The

More information

WHAT HAPPENS WHEN A BROKER-DEALER FAILS? A SUMMARY OF CERTAIN KEY BANKRUPTCY CODE AND SIPA-RELATED ISSUES

WHAT HAPPENS WHEN A BROKER-DEALER FAILS? A SUMMARY OF CERTAIN KEY BANKRUPTCY CODE AND SIPA-RELATED ISSUES CLIENT MEMORANDUM WHAT HAPPENS WHEN A BROKER-DEALER FAILS? A SUMMARY OF CERTAIN KEY BANKRUPTCY CODE AND SIPA-RELATED ISSUES As widely reported, on March 16, 2008, J.P. Morgan Chase & Co. agreed to acquire

More information

STANDARD LIFE INVESTMENTS PROPERTY INCOME TRUST LIMITED

STANDARD LIFE INVESTMENTS PROPERTY INCOME TRUST LIMITED This document is issued by Standard Life Investments Property Income Trust Limited (the "Company") and is made available by Standard Life Investments (Corporate Funds) Limited (the AIFM ) solely in order

More information

European Market Infrastructure Regulation (EMIR): Pension fund exemption on central clearing

European Market Infrastructure Regulation (EMIR): Pension fund exemption on central clearing European Market Infrastructure Regulation (EMIR): Pension fund exemption on central clearing Finding a solution for cash variation margin remains the main concern Executive Summary The fundamental issue

More information

FINAL NOTICE. The Bank of New York Mellon London Branch ( BNYMLB ) The Bank of New York Mellon International Limited ( BNYMIL )

FINAL NOTICE. The Bank of New York Mellon London Branch ( BNYMLB ) The Bank of New York Mellon International Limited ( BNYMIL ) FINAL NOTICE To: The Bank of New York Mellon London Branch ( BNYMLB ) The Bank of New York Mellon International Limited ( BNYMIL ) Reference Numbers: 122467 183100 Address: 1 Canada Square London E14 5AL

More information

Risk Explanation for Exchange-Traded Derivatives

Risk Explanation for Exchange-Traded Derivatives Risk Explanation for Exchange-Traded Derivatives The below risk explanation is provided pursuant to Hong Kong regulatory requirements relating to trading in exchange-traded derivatives by those of our

More information

OTC Derivatives Clearing in Practice. Reto Ziltener, Head Sales Prime Services 23 rd September 2014

OTC Derivatives Clearing in Practice. Reto Ziltener, Head Sales Prime Services 23 rd September 2014 OTC Derivatives in Practice Reto Ziltener, Head Sales Prime Services 23 rd September 2014 Agenda Terms OTC Derivatives - Transformation of the OTC derivatives market Mandatory clearing and collateralisation

More information

Insolvency and. Business Recovery. Procedures. A Brief Guide. Compiled by Compass Financial Recovery and Insolvency Ltd

Insolvency and. Business Recovery. Procedures. A Brief Guide. Compiled by Compass Financial Recovery and Insolvency Ltd Insolvency and Business Recovery Procedures A Brief Guide Compiled by Compass Financial Recovery and Insolvency Ltd I What is Insolvency? Insolvency is legally defined as: A company is insolvent (unable

More information

International Accounting Standard 32 Financial Instruments: Presentation

International Accounting Standard 32 Financial Instruments: Presentation EC staff consolidated version as of 21 June 2012, EN EU IAS 32 FOR INFORMATION PURPOSES ONLY International Accounting Standard 32 Financial Instruments: Presentation Objective 1 [Deleted] 2 The objective

More information

Principles for CCP Recovery

Principles for CCP Recovery November 2014 Principles for CCP Recovery INTRODUCTION The derivatives industry has made great progress over the past few years in implementing the public policy mandate to migrate most over-the-counter

More information

Instruction. N Title. 1.3 In this Instruction: LCH.Clearnet SA IV.5-4. Article 1 - Scope and interpretation

Instruction. N Title. 1.3 In this Instruction: LCH.Clearnet SA IV.5-4. Article 1 - Scope and interpretation N Title LCH.Clearnet SA Instruction IV.5-4 THE FIXED INCOME DEFAULT MANAGEMENT PROCESS FOR TRANSACTIONS EXECUTED ON TRADING & MATCHING PLATFORMS AND THE MTS ITALY REGULATED MARKET Pursuant to Section 4.5.2.

More information

CUSTOMER FUNDS PROTECTION AT SOCIETE GENERALE NEWEDGE UK LIMITED

CUSTOMER FUNDS PROTECTION AT SOCIETE GENERALE NEWEDGE UK LIMITED NEWEDGE CUSTOMER FUNDS PROTECTION AT SOCIETE GENERALE NEWEDGE UK LIMITED November 2015 OVERVIEW The foundation for protecting customer property when customer s trade is threefold: Segregation Capital Requirements

More information

CONTRACTS FOR DIFFERENCE

CONTRACTS FOR DIFFERENCE CLIENT SERVICE AGREEMENT Halifax New Zealand Limited Client Service Agreement Product Disclosure Statement for CONTRACTS FOR DIFFERENCE Halifax New Zealand Limited Financial Services Provider No. 146605

More information

PROCEDURE. Part 5.9: Settlement Payment Methods and Schedule PUBLIC. Market Manual 5: Settlements. Issue 17.0 MDP_PRO_0036

PROCEDURE. Part 5.9: Settlement Payment Methods and Schedule PUBLIC. Market Manual 5: Settlements. Issue 17.0 MDP_PRO_0036 PUBLIC MDP_PRO_0036 PROCEDURE Market Manual 5: Settlements Part 5.9: Settlement Payment Methods and Schedule Issue 17.0 This procedure describes the activities and schedule required by the IESO and Market

More information

International Accounting Standard 39 Financial Instruments: Recognition and Measurement

International Accounting Standard 39 Financial Instruments: Recognition and Measurement EC staff consolidated version as of 18 February 2011 FOR INFORMATION PURPOSES ONLY International Accounting Standard 39 Financial Instruments: Recognition and Measurement Objective 1 The objective of this

More information

1. the prior information in writing by the receiving counterparty to the providing counterparty of the risks and consequences inherent:

1. the prior information in writing by the receiving counterparty to the providing counterparty of the risks and consequences inherent: Version 02 Information statement under Article 15 of Regulation (EU) 2015/2365 of the European Parliament and of the Council of 25 November 2015 on the transparency of securities financing transactions,

More information

TITLE 5 BANKING DELAWARE ADMINISTRATIVE CODE

TITLE 5 BANKING DELAWARE ADMINISTRATIVE CODE TITLE 5 BANKING 900 Regulations Governing Business of Banks and Trust Companies 1 905 Loan Limitations: Credit Exposure to Derivative Transactions 1.0 Purpose This regulation sets forth the rules for calculating

More information

Financial Instruments: Recognition and Measurement

Financial Instruments: Recognition and Measurement STATUTORY BOARD FINANCIAL REPORTING STANDARD SB-FRS 39 Financial Instruments: Recognition and Measurement This version of the Statutory Board Financial Reporting Standard does not include amendments that

More information

COMMISSION DELEGATED REGULATION (EU) /... of 10.6.2016

COMMISSION DELEGATED REGULATION (EU) /... of 10.6.2016 EUROPEAN COMMISSION Brussels, 10.6.2016 C(2016) 3446 final COMMISSION DELEGATED REGULATION (EU) /... of 10.6.2016 supplementing Regulation (EU) No 648/2012 of the European Parliament and of the Council

More information

Trade Repository Service White Paper December 2013

Trade Repository Service White Paper December 2013 Trade Repository Service White Paper December 2013 Copyright IntercontinentalExchange, Inc. 2013. All Rights Reserved. Table of Contents DEFINITIONS... 3 EXECUTIVE SUMMARY... 5 OVERVIEW: TRADE REPOSITORIES...

More information

Policy Statement PS25/15 Contractual stays in financial contracts governed by third-country law. November 2015

Policy Statement PS25/15 Contractual stays in financial contracts governed by third-country law. November 2015 Policy Statement PS25/15 Contractual stays in financial contracts governed by third-country law November 2015 Prudential Regulation Authority 20 Moorgate London EC2R 6DA Prudential Regulation Authority,

More information

THE IMPACT OF EMIR ON FINANCIAL COUNTERPARTIES

THE IMPACT OF EMIR ON FINANCIAL COUNTERPARTIES March 15, 2013 THE IMPACT OF EMIR ON FINANCIAL COUNTERPARTIES To Our Clients and Friends: On 16 August 2012, The European Market Infrastructure Regulation ( EMIR ) 1 came into force with immediate and

More information

PROTECTION OF CUSTOMER FUNDS FREQUENTLY ASKED QUESTIONS

PROTECTION OF CUSTOMER FUNDS FREQUENTLY ASKED QUESTIONS PROTECTION OF CUSTOMER FUNDS Version 4.0 REVISED NOVEMBER 2014 2 This document, first issued in February 2012, has been prepared by members of the FIA Law and Compliance Division and contains questions

More information

APPENDIX B A CREDITORS GUIDE TO ADMINISTRATORS REMUNERATION SCOTLAND

APPENDIX B A CREDITORS GUIDE TO ADMINISTRATORS REMUNERATION SCOTLAND APPENDIX B A CREDITORS GUIDE TO ADMINISTRATORS REMUNERATION SCOTLAND This guide applies to all appointments on or after 6 April 2006. Any creditor requiring guidance on a case where the Insolvency Practitioner

More information

Managed Fund Service. Terms and Conditions

Managed Fund Service. Terms and Conditions Managed Fund Service Terms and Conditions Important Information These are the Terms and Conditions for your Balkerne Asset Management Managed Fund Service. You are advised to read them carefully. The terms

More information

REFERENCE GUIDE TO REVIEWING PROJECT RESULTS

REFERENCE GUIDE TO REVIEWING PROJECT RESULTS November 18, 2013 GFMA Global FX Division OTC FX Options Clearing & Settlement Analysis Results REFERENCE GUIDE TO REVIEWING PROJECT RESULTS The purpose of this reference guide is to assist interested

More information

Indian Accounting Standard (Ind AS) 39 Financial Instruments: Recognition and Measurement

Indian Accounting Standard (Ind AS) 39 Financial Instruments: Recognition and Measurement Indian Accounting Standard (Ind AS) 39 Financial Instruments: Recognition and Measurement Contents Paragraphs Objective 1 Scope 2 7 Definitions 8 9 Embedded derivatives 10 13 Recognition and derecognition

More information

Liquidating an insolvent Jersey company

Liquidating an insolvent Jersey company Liquidating an insolvent Jersey company DECEMBER 2011 For more briefings visit mourantozannes.com This briefing is only intended to give a summary and general overview of the subject matter. It is not

More information

Macquarie Shorting. Product Disclosure Statement 15 JUNE 2015

Macquarie Shorting. Product Disclosure Statement 15 JUNE 2015 Macquarie Shorting Product Disclosure Statement 15 JUNE 2015 Macquarie Bank Limited. ABN 46 008 583 542. Australian Financial Services Licence No. 237502. 1 This PDS This product disclosure statement (

More information

A CREDITOR S GUIDE TO FEES CHARGED BY TRUSTEES IN BANKRUPTCY ENGLAND AND WALES. 1 Introduction

A CREDITOR S GUIDE TO FEES CHARGED BY TRUSTEES IN BANKRUPTCY ENGLAND AND WALES. 1 Introduction A CREDITOR S GUIDE TO FEES CHARGED BY TRUSTEES IN BANKRUPTCY ENGLAND AND WALES 1 Introduction 1.1 When an individual becomes bankrupt the costs of the bankruptcy proceedings are paid out of his or her

More information

Independent Amounts Release 2.0 March 1, 2010

Independent Amounts Release 2.0 March 1, 2010 Independent Amounts Release 2.0 Independent Amounts Abstract Collateralization has become a key method of mitigating counterparty credit risk in the derivative markets, both bilateral, privately-negotiated

More information

Winding Up Part 11 of the Draft Companies Bill. Brendan Cooney Partner

Winding Up Part 11 of the Draft Companies Bill. Brendan Cooney Partner Winding Up Part 11 of the Draft Companies Bill Brendan Cooney Partner Contents of Presentation Part 11: Winding Up 1. Chapter 1 Preliminary and Interpretation 2. Chapter 2 Winding Up by the Court 3. Chapter

More information

Dividend Reinvestment Plan Service Terms and Conditions

Dividend Reinvestment Plan Service Terms and Conditions Dividend Reinvestment Plan SHARE REGISTRATION EMPLOYEE BENEFITS INVESTMENT SERVICES BUSINESS PROCESS OUTSOURCING Dividend Reinvestment Plan Service Terms and Conditions PARTNERSHIP THROUGH INSIGHT, INTEGRITY

More information

Title VII: Derivatives (Wall Street Transparency and Accountability Act of 2010)

Title VII: Derivatives (Wall Street Transparency and Accountability Act of 2010) Title VII: Derivatives (Wall Street Transparency and Accountability Act of 2010) Summary: Regulates the previously unregulated, over-the-counter (OTC) derivatives market Requires registration of swap dealers,

More information

Foreign Currency Forward Master Contract

Foreign Currency Forward Master Contract Foreign Currency Forward Master Contract Foreign Currency Forward Master Agreement ( Agreement ), dated as of, 20 between the client ( Client ) and Tempus, Inc. ( Tempus ). BACKGROUND 1. Forward Contract.

More information

957.1. Federal Act. Intermediated securities. (Federal Intermediated Securities Act, FISA) Chapter 1: Purpose, Scope and Definitions

957.1. Federal Act. Intermediated securities. (Federal Intermediated Securities Act, FISA) Chapter 1: Purpose, Scope and Definitions English is not an official language of the Swiss Confederation. This translation is provided for information purposes only and has no legal force. Federal Act on Intermediated Securities (Federal Intermediated

More information

COLLATERAL MANAGEMENT SERVICE. Service Description

COLLATERAL MANAGEMENT SERVICE. Service Description COLLATERAL MANAGEMENT SERVICE Service Description LEGAL DISCLAIMER The content of this document is subject to change without notice. Although this document has been prepared on the basis of the best information

More information

10.1 ASX SETTLEMENT ENTITLED TO ASSUME RULES COMPLIED WITH...6 10.1.1 ASX Settlement entitled to assume without inquiry... 6

10.1 ASX SETTLEMENT ENTITLED TO ASSUME RULES COMPLIED WITH...6 10.1.1 ASX Settlement entitled to assume without inquiry... 6 SECTION 10 BATCH SETTLEMENT 10.1 ASX SETTLEMENT ENTITLED TO ASSUME RULES COMPLIED WITH...6 10.1.1 ASX Settlement entitled to assume without inquiry... 6 10.2 PARTICIPATION IN BATCH SETTLEMENT...6 10.2.1

More information

NASDAQ DUBAI OPERATING PROCEDURES. Clearing, Settlement and Risk management for securities May 2013 Ver. 1.71

NASDAQ DUBAI OPERATING PROCEDURES. Clearing, Settlement and Risk management for securities May 2013 Ver. 1.71 NASDAQ DUBAI OPERATING PROCEDURES Clearing, Settlement and Risk management for securities May 2013 Ver. 1.71 CONTENTS 1. Introduction... 3 1.1 Scope... 3 1.2 Additional Documentation... 3 1.3 NASDAQ Dubai

More information

Financial Instruments

Financial Instruments Compiled AASB Standard AASB 9 Financial Instruments This compiled Standard applies to annual reporting periods beginning on or after 1 January 2015. Early application is permitted. It incorporates relevant

More information

FREQUENTLY ASKED QUESTIONS BY INSURANCE PROFESSIONALS WHO ARE CONSIDERING FLEX OPTIONS

FREQUENTLY ASKED QUESTIONS BY INSURANCE PROFESSIONALS WHO ARE CONSIDERING FLEX OPTIONS FREQUENTLY ASKED QUESTIONS BY INSURANCE PROFESSIONALS WHO ARE CONSIDERING FLEX OPTIONS WHAT ARE FLEX OPTIONS? FLEX options are customizable options where users define their own terms. They differ from

More information

FP MARKETS CONTRACTS FOR DIFFERENCES PRODUCT DISCLOSURE STATEMENT

FP MARKETS CONTRACTS FOR DIFFERENCES PRODUCT DISCLOSURE STATEMENT FP MARKETS CONTRACTS FOR DIFFERENCES PRODUCT DISCLOSURE STATEMENT Issue Date: 14 January 2013 First Prudential Markets Pty Ltd ABN 16 112 600 281 AFSL 286354 1 FP Markets Contracts For Difference Product

More information

PERSONAL PROPERTY LAW

PERSONAL PROPERTY LAW --------------------------------------------------------------------------------------- PERSONAL PROPERTY LAW DIFC LAW No. 9 of 2005 -----------------------------------------------------------------------------------

More information

ASX CLEAR (FUTURES) OPERATING RULES

ASX CLEAR (FUTURES) OPERATING RULES ASX CLEAR (FUTURES) OPERATING RULES PART 1 DEFINITIONS... 103 Definitions... 103 OTC Clearing and OTC Rules... 121 ASX Clear (Futures) Operating Rules Part 1 Page 101 ASX Clear (Futures) Operating Rules

More information

4.1 Application 4.2 Interpretation: general

4.1 Application 4.2 Interpretation: general Appendix A PART 4 CLIENT MONEY 4.1 Application 4.2 Interpretation: general 4.3 Meaning of "client money" 4.4 Meaning of "client bank account" and related expressions 4.5 General restriction on holding

More information

9. MARGIN REQUIREMENT

9. MARGIN REQUIREMENT 9. 9.1 Marginable Position SEOCH requires margin for open option positions and pending stock positions. This is calculated and collected, where necessary, on a daily basis using routine procedures which

More information

INTRODUCTION OF MARGINABLE FUTURES CONTRACTS FOR TRADING ON SGX-ST AMENDMENTS TO CDP CLEARING RULES

INTRODUCTION OF MARGINABLE FUTURES CONTRACTS FOR TRADING ON SGX-ST AMENDMENTS TO CDP CLEARING RULES CHAPTER 1 INTRODUCTION 1.1 APPLICATION 1.1 APPLICATION 1.1.3 Except where CDP otherwise expressly agrees with or expressly commits itself to any party, the benefit of any performance by CDP of its obligations

More information

ASSIGNMENT AND CHARGES OF CONTRACTUAL RIGHTS AND RECEIVABLES

ASSIGNMENT AND CHARGES OF CONTRACTUAL RIGHTS AND RECEIVABLES ASSIGNMENT AND CHARGES OF CONTRACTUAL RIGHTS AND RECEIVABLES A version of this article, written by Head of Banking & Finance, Jonathan Porteous, first featured in Butterworths Journal of International

More information

The Scottish Investment Trust PLC

The Scottish Investment Trust PLC The Scottish Investment Trust PLC INVESTOR DISCLOSURE DOCUMENT This document is issued by SIT Savings Limited (the Manager ) as alternative investment fund manager for The Scottish Investment Trust PLC

More information

The Division of Swap Dealer and Intermediary Oversight (the Division ) of the

The Division of Swap Dealer and Intermediary Oversight (the Division ) of the U.S. COMMODITY FUTURES TRADING COMMISSION Three Lafayette Centre 1155 21st Street, NW, Washington, DC 20581 Telephone: (202) 418-5000 Facsimile: (202) 418-5521 www.cftc.gov Division of Swap Dealer and

More information

Client Assets. Chapter 7. Client money rules

Client Assets. Chapter 7. Client money rules Client Assets Chapter Client money rules .11 Treatment of client money.11.1 Title transfer collateral arrangements (1) Where a client transfers full ownership of money to a firm for the purpose of securing

More information

Duties of the directors of companies in financial difficulties. slaughter and may. October 2010

Duties of the directors of companies in financial difficulties. slaughter and may. October 2010 Duties of the directors of companies in financial difficulties slaughter and may October 2010 Contents 1. Introduction 01 2. Overview 01 3. Practical guidance 02 4. Common law, statutory and regulatory

More information

CLIENT AGREEMENT. ROBOOPTION TN / ROBOFOREX (CY) LTD Soboh House 377, 28th October Street Office #1, 3107, Limassol, Cyprus

CLIENT AGREEMENT. ROBOOPTION TN / ROBOFOREX (CY) LTD Soboh House 377, 28th October Street Office #1, 3107, Limassol, Cyprus CLIENT AGREEMENT ROBOOPTION TN / ROBOFOREX (CY) LTD TERMS OF BUSINESS FOR CLIENTS RoboForex (CY) Ltd RoboForex (CY) Ltd.is authorized and regulated by the Cyprus Securities and Exchange Commission License:

More information

A CREDITORS GUIDE TO INSOLVENCY PRACTITIONERS FEES

A CREDITORS GUIDE TO INSOLVENCY PRACTITIONERS FEES A CREDITORS GUIDE TO INSOLVENCY PRACTITIONERS FEES This document contains two (2) sections SECTION A Individual Voluntary Arrangements (IVA s) SECTION B Scottish Protected Trust Deed s (PTD s) SECTION

More information

Trading Appendix 1 / Clearing Appendix 1. Definitions. Commodity Derivatives. Issued by NASDAQ OMX Oslo ASA and NASDAQ OMX Clearing AB

Trading Appendix 1 / Clearing Appendix 1. Definitions. Commodity Derivatives. Issued by NASDAQ OMX Oslo ASA and NASDAQ OMX Clearing AB Trading Appendix 1 / Clearing Appendix 1 Definitions Commodity Derivatives Issued by NASDAQ OMX Oslo ASA and NASDAQ OMX Clearing AB Effective Date: 720 April 20142015 DEFINITIONS Account Holder Affiliate

More information