Ice members split over new client clearing model

A client clearing model championed by Ice Clear Europe as a capital-efficient way to provide extra protection for client assets is dividing clearing members. Some claim it could leave them unfairly exposed in the event of a client default.

The approach – dubbed sponsored principal – allows buy-side firms to face the clearing house directly. The client would make initial and variation margin payments to Ice, rather than using a member firm as an intermediary, and would no longer be exposed to the