Omnibus accounts in favour despite higher capital charges
Operational complexity in Europe and low volumes in Asia are deterring buy-side clearers from ISAs
Most over-the-counter derivatives clearing participants have opted to segregate their assets under a gross omnibus account structure despite it attracting double the capital of an individually segregated account (ISA) under Basel III rules.
Asset segregation is an important element in the clearing equation given that funds may be at risk in the event of a clearing member default. Several different approaches exist but the safest model is an ISA which also attracts a lower capital charge than the
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