Taking a Sustainable Approach to Client Segregation

Author: Olivier Bessi, SunGard's IntelliMatch After five years of planning and deliberation, the European Markets Infrastructure Regulation (EMIR) is finally starting to take effect. But while major changes are imminent for sell-side operations, it’s critical that firms take a long-term approach to the impact of this regulation. Of all EMIR’s requirements, one of the most notable for sell-side firms is the introduction of individual client segregation at the derivatives clearing house. Under this specific regulation, Europe’s central counterparties (CCPs) and their clearing members must allow their customers to keep a separate, individually segregated account (ISA) for their holdings of each client: clearly distinguishable from all their other clients’ assets and positions.