Clearing overview - CCP

Revision as of 16:15, 30 April 2019 by Amwelladmin (talk | contribs)


Margin Type Transfer Type Client Risk

(Broker)

Client Risk

(Bank/Custodian)

Client Risk

(Intermediary)

Broker Risk

(Bank/Custodian)

Broker Risk

(Intermediary)

Cash Outright transfer Yes No - it's the Broker's bank. Depends on limited recourse Yes Depends on limited recourse
Cash Client money No Yes – it is client’s bank Generally Yes but limited recourse language will help No Generally Yes but limited recourse language will help
Securities Outright transfer Yes No - it's a custody asset. Yes, if limited recourse No No
Securities Pledge No, unless a right of rehypothecation, in which case Yes. No If re-pledged: No. If rehypothecated: Depends on limited recourse. No Depends on limited recourse.