Eurex calls for capital relief on segregated accounts

If positions can be ported easily, clearing members should not be on the hook

Deutsche Börse, owner of Eurex

Regulators should provide a capital incentive for the use of segregated accounts in derivatives clearing, because they reduce risk if a member defaults, according to Matthias Graulich, global head of clients and markets at Eurex Clearing. The argument is that segregated collateral can be ported away from a stricken clearing member more easily, shrinking the amount of risk for which the firm is responsible.

Capital rules for cleared trades already create an incentive for bank users of clearing