Rethinking Investor Protection in the Central Clearing Revolution
Automation and STP are required to protect investors.
Buy-side firms have a pivotal role to play and must now make the crucial decision about where to clear over-the-counter (OTC) flow. Protecting clients is going to be front of mind so firms will be paying close attention to two factors: segregation models and recovery plans.
True Client Segregation
If a clearing member were to default, investors want reassurance that they'll be able to quickly transfer their positions, along with any collateral held, to a new member. Asset segregation models are
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