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Questionnaire for CDS CCPs on Protection of Customer Initial Margin - page 8 / 32





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group)), please detail all aspects of the arrangement that are relevant from a customer protection standpoint, specifically addressing the following:

  • i.

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

    • 1.

      On behalf of whom the CCP is holding the property – itself, the CMs or the customers (as a group or individually);

Cash margin is transferred to and held by the CCP as principal.

Securities are transferred to LCH.C’s accounts at (I)CSDs or custodians and are subject to a charge in favour of LCH.C. Beneficial ownership of those securities is not transferred to LCH.C (LCH.C never holds those securities in a beneficial capacity except in the event of a CM default.)

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 CCP or instead, commingled in a single omnibus account (either for CDS customers or custodial claimants of the CCP generally);

The margin for segregated customers is calculated based on an omnibus customer account.

Note that CCP margin does not secure the position of a particular customer.

a. In whose name(s) has/have the account(s) been established?


3. Whether CCP Margin securing customer positions will be segregated from the CCP Margin securing proprietary positions of CMs;


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