Moving excess customer funds to a clearing house is one way to reduce the amount of capital at risk. Byron Baldwin, SVP, Buyside Relations at Eurex, says his exchange developed segregated account services that can be as wide or granular as needed.
Also see — Customer Segregation: Keep It Separate
Customer Segregation Resources
- Segregated funds (link)
- CFTC Final Rule: Investment of Customer Funds by Futures Commission Merchants and Derivatives Clearing Organizations, Regulation 1.25 (link)
- A Layman’s Guide to Regulation 1.25 (link)
- CFTC Final Rule: Customer Clearing Documentation, Timing of Acceptance for Clearing, and Clearing Member Risk Management (link)
- Derivatives Clearing Organizations Regulation (link)
- Boarding the “Wrong Train” – Five Minutes with Gary DeWaal, Newedge (link)
- Eurex Clearing – Client Asset Protection (link)
About the series: In the aftermath of the MF Global collapse, fraud at Peregrine Financial Group and high profile high-frequency trading shocks, John Lothian News asks – how do you restore customer confidence and bring traders back?