ASX Potential Changes to the Operations of its Central Counterparty Clearing Services

ASX is released October 25 an important discussion document seeking market feedback on potential changes to the operations of its central counterparty (CCP) clearing services for futures, options and other derivative financial products. Please find this document here.

Given ongoing changes to regulatory standards and growing demand for client clearing, ASX is reviewing the scope of its available account structures and portability capabilities for clients of defaulting Clearing Participants. Any subsequent changes to existing arrangements will further enhance client protection and potentially also impact the distribution of risks and commercial returns between CCP clearing houses, Clearing Participants and their clients.

The document seeks comment on several key potential changes, including:
• CCPs holding of client margin monies;
• Clients being able to elect to have their positions and margin held in new Individually Segregated Client Accounts;
• CCPs holding cash margins in trust rather than on the balance sheet of the CCP.

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