ISA Direct

Direct Clearing membership for the buy side

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.


Watch also: ISA Direct videos

At the glance

  • Direct buy-side membership via a Clearing Agent
  • The Clearing Agent covers the default fund contribution & default management obligation
  • The member maintains legal and beneficial collateral ownership 
  • Reduced capital requirements
  • Improved buy-side conditions versus bilateral arrangements
  • Enhanced segregation & portability
  • Direct CCP access for cleared Repo, providing a larger liquidity pool

Increased balance sheet capacity

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. 

Explaining ISA Direct for Repo

Eurex's ISA-Direct gives institutional investors direct access to centrally cleared repo markets, allowing them to interact with more than 160 counterparties. Watch our video to discover the benefits our buy-side tailored solution can provide by offering you direct access to the centrally cleared repo market.

Buy-side opportunities in central clearing

In this video Matthias Graulich, Member of the Eurex Clearing Executive Board, discusses the risk management challenges for the buy side in the face of changing regulatory requirements and today’s low interest rate environment, and how a new breed of solutions is helping firms access the cleared repo market for more efficient cash management. Risk.net has conducted this video interview. It was published first on Risk.net.

Advantages of ISA Direct

Swiss Life Asset Managers uses Eurex Clearing’s direct CCP access to clear OTC IRS with ABN AMRO Clearing acting as the Clearing Agent. In this video, experts from the participating firms explain the benefits from their point of view.


"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
 

Contact us

Fixed Income, Funding & Financing Sales

Frankfurt

T +49-69-211-138 59

London

T +44-20-78 62-72 76 

FixedIncome.Sales@eurex.com