Clearing overview - CCP

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.

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