- Category: Client Clearing
- Published: Wednesday, 13 August 2014 11:27
- Written by skyapex
- Hits: 698
Banks shun Emir's indirect clearing service
Indirect clearing allows the clients of a clearing member to take on clients of their own, but the member remains the ultimate guarantor of the risk, and Emir requires both groups of customers to be treated the same. That means giving the so-called end-clients a choice of at least two forms of collateral protection. The first of these, omnibus accounts, is cheaper for clearing members to offer; the second, individual segregation, is more expensive. Members are so far refusing to offer individual segregation to end-clients, which they have no direct contact with, and argue the European Securities and Markets Authority (Esma) will need to intervene if anything is to change.