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Quantitative Finance · Begrippenlijst

Wat is Clearing mandate, client clearing and porting?

Ook bekend als: clearing mandate · client clearing · porting

Definition 10.1 Markets II: Rates, FX and Credit · Hoofdstuk 10 — Swap Clearing and the Clearing-House Basis

A 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.

Five dealers trading swaps bilaterally, each pair with its own collateral agreement, and the same dealers after clearing, each facing only the clearing house. Schematic.
Figure 10.1. Five dealers trading swaps bilaterally, each pair with its own collateral agreement, and the same dealers after clearing, each facing only the clearing house. Schematic.
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