PelatihA clearing mandate is a regulatory requirement that designated classes of derivatives be cleared through a central counterparty (One Quant Book 1, chapter 5). Firms that are not members of the clearing house clear through a member, which guarantees their trades: this is client clearing. Porting is the transfer of a client’s positions and margin from a defaulting clearing member to another, so that the client’s hedges survive its broker’s failure.
