Tuesday May 13 2014
News Source: Global Exchanges
Focus: Stock Exchange Corporate Governance
Type: General
Country: European Union
Link: http://cmegroup.mediaroom.com/index.php?s=43&item=3511
CME Group’s European clearing house had announced that it is the first central counterparty (CCP) globally to receive Bank of England approval of the full segregation client protection model with enhanced protection for all bankruptcy scenarios. The new client protection model fully segregates collateral with an external custodian at the client level. The enhanced protection it offers for all bankruptcy scenarios is expected to result in favourable capital treatment.
The new account model is designed to allow the client protection and control of their securities at all times with clarity and legal certainty with regards to how client assets would be treated in all bankruptcy scenarios. The full segregation account expands client asset protection beyond European Market Infrastructure Regulation (EMIR) requirements. It is available across all of CME Clearing Europe`s OTC financial and commodity derivatives as well as futures products.
CME Clearing Europe is working with central securities depositories (CSD) and custodians to offer clients the option of holding their securities at different locations. The first CSD to offer this to their clients is SIX Securities Services. The first custodian to support this model is BNP Paribas Securities Services.
Click on the above link for further details.