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Questionnaire for CDS CCPs on Protection of Customer Initial Margin - page 10 / 32

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1. Who obtains the economic benefit of investment of CCP Margin in permitted instruments? Who bears the risk of loss?

Some economic benefit is passed to the CMs in the form of interest. LCH bears the risk of loss.

2. How does the above response differ as between Required Margin and CCP Excess Margin posted to the CCP?

No difference.

b. CCP Margin Held at a Custodian (Whether the Custodian is Holding for the CCP, Individual CMs or Customers) – If the CCP will hold CCP Margin at a custodian, please detail all aspects of the custodial arrangement that are relevant from a customer protection standpoint, specifically addressing the following:

N/A

  • i.

    The manner in which the custodian holds the CCP Margin, distinguishing to the extent applicable between various types of CCP Margin (e.g., securities or cash), and identifying in particular:

    • 1.

      On whose behalf the custodian is holding the property – the CCP, the CMs or the customers (as a group or individually);

N/A

2. Whether CCP Margin securing the positions of a particular CDS customer will be segregated from (i) the CCP Margin posted by other CDS customers and (ii) the property of other custodial claimants of the custodian, or instead, commingled in a single omnibus account (either for CDS customers or custodial claimants of the custodian generally);

N/A

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