Performance & Stability
        
        What Are the Key Differences between a Direct Clearing Member and a Client Clearing Model?
        
         
        
        
          
        
        
      
        
     
        
        A Direct Clearing Member has a direct contractual relationship with a CCP, while a client in a client clearing model has an indirect relationship.
        
        How Does the Segregation of Initial Margin Protect a Firm in the Event of a Counterparty Default?
        
         
        
        
          
        
        
      
        
     
        
        Segregating initial margin legally isolates a firm's collateral from a counterparty's insolvency, ensuring its immediate availability.
        
        What Are the Primary Differences between a Clearing Member and a Client Clearing Model?
        
         
        
        
          
        
        
      
        
     
        
        A clearing member is a direct, risk-bearing participant in a CCP, while a client clearing model is the intermediated access route for non-members.
        
        How Do Different Client Segregation Models Affect Risk during a Default?
        
         
        
        
          
        
        
      
        
     
        
        Segregation models define the legal and operational firewalls protecting client assets from counterparty default risk.
        
        How Does the Choice of a CCP Segregation Model Impact a Firm’s Capital Efficiency?
        
         
        
        
          
        
        
      
        
     
        
        A firm's CCP segregation model dictates the trade-off between capital efficiency via margin netting and asset protection via portability.
        
        How Does Collateral Segregation for Initial Margin Protect a Firm from Counterparty Insolvency?
        
         
        
        
          
        
        
      
        
     
        
        Collateral segregation for initial margin protects a firm by legally and operationally isolating posted assets from a counterparty's insolvency.
        
        Can Non-Clearing Members Such as Hedge Funds Participate Directly in a CCP Default Management Process?
        
         
        
        
          
        
        
      
        
     
        
        Non-clearing members like hedge funds cannot participate directly; their interests are managed via position portability or liquidation by the CCP.
        
        What Are the Key Differences between a Bilateral Close out and a CCP Default Management Process?
        
         
        
        
          
        
        
      
        
     
        
        A bilateral close-out privatizes default resolution; a CCP's process mutualizes and systematically manages default across a network.
        
        Does Gross Margining Increase the Overall Cost of Clearing for End Clients?
        
         
        
        
          
        
        
      
        
     
        
        Gross margining increases direct funding and operational clearing costs to provide robust protection and position portability during a counterparty default.

 
  
  
  
  
 