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 se