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Eurex Clearing offers new “Omnibus Model” segregation service for the UK market

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Eurex Clearing has expanded its suite of segregation services by offering a UK CASS-compliant Omnibus Clearing Model as an additional alternative.

The new service complements the existing models – the Individual Clearing Model (ICM) and the Elementary Clearing Model (ECM).

It allows UK-domiciled clearing members to use the segregation rules for client assets (CASS) of the Financial Services Authority (FSA) in respect of client margin collateral. Goldman Sachs was the first clearing member deploying the new service model for its clients. Further clearing members are preparing to use the new segregation service.

The new service keeps margin collateral of clients and non-clearing members separate from the clearing member’s collateral holdings for own accounts. Based on CASS rules the client and non-clearing member collateral is legally protected in the case of a clearing member default.

“The new Omnibus Model is tailored to the particular requirements of our large UK clearing member base. Having one of the largest clearing members as the first adopter proves the attractiveness of the new offering,” says Thomas Book, member of the Eurex executive board and responsible for clearing.

Eurex Clearing expects a considerable proportion of UK-domiciled clearing members to switch to the Omnibus Model in the near future.

The CASS compliant Omnibus Clearing Model is available for clearing members domiciled in the UK. It can be offered to clients and non-clearing members (NCM) in and outside of the UK. Client and NCM margin collateral needs to be transferred to the clearing member under CASS client money rules and CASS custody rules, respectively.

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