Reclaim Procedure

ECC has established a claim procedure for non ISA/OSA segregated collateral remaining with ECC in the standard collateral pool, the simple omnibus pool or the general omnibus pool after the default procedures have been completed. Known Participants (NCMs and segregated clients) whose positions have not been transferred can reclaim some of the collateral provided to their Clearing Member under the following conditions (see also section 3.11.3 lit. b (ii) Clearing Conditions):

  • ECC will on behalf of the Known Participants ask the administrator of the CM to confirm, that he will return those assets to the Known Participants without these assets becoming part of the insolvency estate. If such confirmation can be achieved within a time frame determined by ECC, ECC will return the respective assets to the insolvency administrator if the Known Participants agree.
  • If a Known Participant does not agree, ECC will return assets to the Known Participant. 
  • The return of assets is subject to a verification of existing claims of the Known Participant from providing assets to his CM. The verification will be performed by independent auditors that have been approved by ECC.
  • ECC will only return assets to the Known Participants if:
    • There is no close out netting agreement between the Known Participant and his CM that covers ECC and other Clearing Houses or other entities
    • Assets have been title transferred
    • The sum of the returned assets does not exceed the margin requirement of the Known Participant

Assets in this context will likely be cash and not the assets originally posted by the Known Participant to the CM. If more than one Known Participant request the return of assets ECC will distribute them pro rata. Any remaining claims after the distribution by ECC have to be addressed to the administrator.