Indirect Client Clearing Agreementadmin
(1) „indirect customer,“ the client of a customer of a compensatory member; Indirect clearing services allow counterparties to access compensation when they are not or cannot be a direct member of a central counterparty or a direct customer of a countervailing member, which expands access to central counterparties to a larger group of counterparties. There are two possible models that allow indirect compensation to work in practice. All systems used by an investment firm acting as a clearing-company („clearing-company“ used to support the provision of its clearing services to its customers are subject to appropriate assessments, controls and due diligence checks. 1. A clearing company publishes the conditions under which it offers its clearing services. It offers these services on reasonable commercial terms. Indirect clients should have a choice between the alternative account segregation options mentioned above and comprehensive information on the risks associated with any segregation option. The information provided by the customer to indirect customers must also provide details on how to transfer positions and accounts to another customer. The definition of the most advantageous option of market access is sometimes complicated by the fact that the importance of the indirect customer relationship and its effects are often confused. However, trading platforms may require members or participants to enter into and maintain an agreement with a countervailing member as a condition of access when exchanges are authorized centrally.“ In its questions and answers of 7 July 2017 (ESMA70-872942901-38) on miFID II and MiFIR, the AEMF stressed that trading platforms should not require members of the central counterparty or participants.
While the clearing derivatives industry has tried over the past two years to resolve the difficulties imposed on it by indirect clearing requirements for OTC derivatives – and has not yet found a definitive solution – the problem has been compounded by the introduction of indirect clearing requirements for exchange-traded derivatives with respect to LMFR. , which is currently in the consultation and drafting phase. In the event of a failure of a countervailing member, is it permissible for a central counterparty to liquidate all security held in all indirect gross retail accounts (see paragraph 2, point b), and to collectively spend the resulting sum to cover losses or to allow compensation of positions on different accounts? Indirect compensation – not leading to the requirement for countervailing brokers to offer a clearing service to all potential customers or on binding terms, but should allow them to offer a clearing service in a competitive, commercial and prudent manner; and by creating a series of over-the-counter contracts in return on essentially identical terms – between the indirect customer and the direct customer; The direct customer and the countervailing member; Compensation member and clearing house – the indirect customer is considered to be his obligation (if any) to „clarify“ this over-the-counter contract in accordance with EMIR.