Our ISA Direct model combines elements of a direct clearing membership and the traditional service relationship in client clearing - tailored specifically for the buy side. It opens up a new principal client relationship between buy side clients and the CCP, with the regular Clearing Member acting as a Clearing Agent, providing a variety of mandatory and optional service functions.
Incorporating additional regulatory challenges while implementing sensible business practices can go hand-in-hand.
With ISA Direct, buy-side clients gain direct access to centrally cleared Repo and OTC IRS markets. This enables them to directly raise cash and increase their balance sheet. As this is all done within the same ecosystem where the initial and variation margins are posted for other transactions, settlement failures and settlement fees are also reduced.
"ISA Direct alleviates the regulatory requirement to centrally cleared OTC derivatives in several ways. By enabling us to become a direct member of the CCP, our concerns regarding counterparty credit risks, clearing costs and portability of our assets are much better addressed compared to the traditional client clearing model."
Swiss Life Switzerland