Porting meaning

Application and purpose of the client money distribution and transfer rules The client money distribution framework was overhauled on 1 January 2013 to meet the requirements of articles 39 and 48 of the EU European Market Infrastructure Regulation (Regulation (EU) No 648/2012, OJ L 201, 27.7.2012) (EU EMIR). Following the UK’s departure from the EU, this legislation was kept as the retained European Market Infrastructure Regulation (UK EMIR) (see Impact of Brexit on CASS and the FCA’s powers and requirements below). Subsequent modifications were introduced in July 2013 through policy statement PS14/9: Review of the client assets regime for investment business, implementing consequential revisions to the client money distribution provisions prompted by the extensive range of proposed amendments to the client money rules set out in PS14/9. Material further changes were made in July 2017 via policy statement PS17/18: CASS 7A and the special administration regime review. For further detail on these developments, see Changes to speed up the return of client money on insolvency...

What is clearing of derivatives? Clearing is the mechanism that removes the usual danger, in practice, that one side to a derivatives deal will fail to perform (counterparty risk). The main participants involved in the clearing process are: a financial institution called a clearing house, and other financial institutions, typically banks or brokers, that enter into a clearing agreement with the clearing house—these institutions are indeed known as clearing members of the clearing house, or simply clearing firms within this framework In cleared transactions: the following applies: every trade is undertaken by clearing members, who may do so for their own accounts or for the accounts of their clients, and the clearing house inserts itself between the clearing members that entered into the trade, becoming a party to each transaction—each participant is therefore exposed to the risk of the clearing house, not to the risk of the other party Clearing members do not need...

What is clearing of derivatives? Clearing is the mechanism that removes the usual danger that one side of a derivatives deal fails to perform (counterparty risk). The key participants in the clearing process are: a specialist financial institution called a clearing house; and other financial institutions—typically banks or brokers—that sign a clearing agreement with the clearing house; these are its clearing members, also referred to as clearing firms In cleared transactions: every trade is executed by clearing members, either for their proprietary books or on behalf of clients; and the clearing house inserts itself between the clearing members to each deal, becoming counterparty to both sides—so each participant bears the clearing house’s credit risk, not that of the opposite side Clearing members therefore need not concern themselves with who their clearing member opposite numbers are, or their credit quality, but only with the credit standing of the clearing house. The clearing house, on the other...