In the event of a Clearing Member default, the segregation of positions and collateral plays a crucial role in safeguarding assets. The European Commodity Clearing (ECC) offers various segregation options in accordance with the European regulatory framework (EMIR Article 39).

General Omnibus Segregation (GOS) (EMIR Art. 39(2))

By default, the proprietary collateral of the Clearing Member is separated from the general omnibus collateral (GOS) within the Standard Collateral Clearing Account on a by-value basis. Clearing Members have the flexibility to establish a separate collateral clearing account specifically for their proprietary collateral, ensuring strict by-asset segregation of the proprietary and the client positions.

Additional segregated accounts can be selected by Clearing Members (and in case of Individual Segregation jointly with the Non-Clearing Member), based on their specific requirements.

Simple Omnibus Segregation (SOS) (EMIR Art. 39(2))

Clearing Members can request ECC to segregate collateral for a group of undisclosed clients and/or Non-Clearing Members in a Simple Omnibus collateral account (SOS). In the SOS account, positions and collateral are kept separate from other clients’ collateral accounts and the Clearing Members’ proprietary business.

Individual Segregation (ISA) (EMIR Art. 39(3) - applicable only to Non-Clearing Members)

Non-Clearing Members can maintain their positions and assets in Individual Segregated Accounts (ISA). ISA accounts are separate from all other clients of the Clearing Member and the Clearing Member’s proprietary business. This individual segregation provides protection against losses arising from other clients’ or the Clearing Member’s positions.

In the event of a Clearing Member default, ECC initiates the process of transferring positions and segregated collateral to a new Clearing Member designated by the Non-Clearing Member. If no Clearing Member accepts the transfer, positions are liquidated, and the remaining balance is returned to the Non-Clearing Member.

To establish an ISA account, both the Non-Clearing Member and the Clearing Member must mutually agree on the segregation terms with the CCP during the setup process.

If you have further questions or need assistance, feel free to contact your Key Account Managers or email clearing@ecc.de to determine the most suitable segregation option for your needs.