At SwapClear, we realize that it's no easy task for your firm to adapt to mandatory central clearing for derivatives. But while EMIR introduces new obligations, it also offers more options for protecting your positions and assets, and for enabling their portability in the event of a default.

SwapClear is offering five plans, each with different degrees of protection for EMIR-compliant customers

Choosing the right plan

Omnibus or Individual Treatment?

SwapClear's protection plans differ in their EMIR classification. Our omnibus ("Omni") plans pool your positions with those of other customers, which means some mutualization of risk—in a default, you may share another client's losses.

However, pooling allows SwapClear to net offsetting positions, which can reduce your initial margin requirements considerably. And Omni plans let you choose the other clients in your pool—you could limit this to your own affiliates, for example.

Our individual segregation ("Seg") plans completely separate your actual positions and/or collateral assets from those of other clients, eliminating fellow-customer risk. Since these plans do not allow for position netting, you do not benefit from a reduction of initial margin.

Do you want your swap positions segregated from those of other counterparties?

Asset or Value Protection?

SwapClear's protection plans fall into two categories: "asset" and "value". Under our asset-based plans, we keep a record of exactly which of the securities posted as collateral are yours. This enables SwapClear to preserve, and then port or return these assets in the event that your clearing member defaults.

Under our value-based options, SwapClear tracks and safeguards a value of client assets for porting or return after a default.

Do you want to protect your actual assets?

Value or Asset Protection?

SwapClear's protection plans fall into two categories: "asset" and "value". Under our value-based options, SwapClear tracks and safeguards the value of the assets in your clearing member's client account in the event of a default.

Under our asset-based plans, we record the specified securities posted as collateral directly into your account. This enables SwapClear to preserve, and then port or return these specified assets after a default.

Do you want to protect your actual assets?
  • Asset SEG
  • Value SEG
  • Asset Omni
  • Value Omni
  • Custodial SEG

The AssetSeg account segregates your positions and collateral assets from those of all other clients. In a clearing broker default, SwapClear treats your collateral value collectively, drawing on the value attributed to the account to meet all amounts owing on the account. Importantly, we identify, and can therefore potentially preserve, your specified assets, which may port with your positions to the clearing broker of your choice.

The ValueSeg account segregates your positions from those of all other clients. Your positions may port to the clearing broker of your choice, along with the collateral value associated with your positions.

The AssetOmni account commingles your positions in a pool with those of other clients that you select. This mitigates fellow customer risk while giving you a controlled netting benefit. SwapClear can identify and potentially preserve the specified assets recorded in the pooled account. In a clearing broker default, SwapClear can draw on these assets only to meet the amounts owing on the pooled account and not to meet amounts owing on any other account. All positions and collateral may port together to another clearing broker, but you can select which.

The ValueOmni account commingles your positions with those of other clients within the ValueOmni, exposing you to some fellow customer risk; however, you can select the other participants within the pool. This gives you a controlled netting benefit. In a clearing broker default, SwapClear treats your collateral value collectively, drawing on the value attributed to the account to meet all amounts owing on such account. Pooled positions and the associated collateral value may port together to another clearing broker, but you can select which.

Now Available!


SwapClear has introduced its latest segregation option, CustodialSeg. It provides the highest level of customer protection and control, enabling you to directly manage the delivery of non-cash collateral to the clearing house.

Still Uncertain Which Account Option is Right for You?

Let Kim Short, one of our sales directors, walk you through our decision tree.

Customer Protection Under EMIR Resources

View the EMIR 39 (7) disclosure documents here

Added Jun 13, 2014


The contents of this document have been provided to you for informational purposes only and are intended as a broad overview. The services of LCH Limited are provided in accordance with, and subject to, its Rulebook and other documentation and there is no substitute for analysing the Rulebook as well as other documentation including, but not limited to, the disclosure statement prepared by LCH Limited in compliance with Article 39(7) of EMIR (and which is available on our website). Accordingly, you must not rely upon the contents of this document, which does not form part of the Article 39(7) disclosure statement and you should seek your own independent legal and other professional advice. This document has not been prepared for a specific client and the information and any opinion contained in this document does not constitute investment advice or a personal recommendation with respect to any applicable securities or other financial instruments. Nothing in this document should be taken as a public offer to sell or to buy any applicable securities or financial instruments.