Client protection model
ASX has established an account structure and set of governing rules that enables its Participants to offer to their futures and OTC Derivative customers the choice of clearing through an Individual Client Account or the traditional Client Omnibus account. The Individual Client Account (ICA) is opened in the name of the individual client at ASX, under the Client clearing account of the Clearing Participant (who continues to clear transactions as agent of the Client). The segregated account allows for the separate identification and protection of individual customers’ gross positions and Collateral Value. Collateral Value is the higher of the initial margin value of positions in the ICA, or the total collateral (cash and non-cash) which has been attributed (via the CP) to the ICA account including excess collateral.
The ICA significantly increases the likelihood of ASX being able to port an individual client’s positions and Collateral Value, to a nominated Alternate Clearer, in the event of Clearing Participant default. Where porting is not available, ASX will close-out the positions in the ICA, with margin value and/or actual attributed assets being returned directly to the client (less the costs of close-out).
The Client Protection Model Brochure can be found here
Fact Sheets and Forms
The ASX Operating Rules, including the Client Protection Model under Part 10, can be found here.
ASX client fact sheets provide an overview of the ASX Client Clearing Service, the Client Protection model that governs it and the investment loss allocation principles that apply in the event of a US settlement bank default.
- The Client Fact Sheet describes the key features of the Omnibus and ICA account structures and must be provided by Clearing Participants to their direct or indirect Clients in accordance with the amended Operating Rules. The Client Fact Sheet as at 22 January 2016 can be found here.
- The ASX Loss Allocation - Fact Sheet for clients explains the allocation of investment losses between ASX, Clearing Participants and their clients if a US settlement bank holding overnight margin monies defaults. It must be provided by Clearing Participants to their direct clients in accordance with the ASX Recovery Rules. The ASX Loss Allocation – Fact Sheet for clients as at 26 February 2024 can be found here.
- The ASX Client Protection Model establishes the framework which governs ASX client clearing and the protection of client assets under the ASX Operating Rules. The CPM Client Fact Sheet can be found here.
- ASX also offers the Client Protection Model service to Nominated Persons of an entity that is itself a direct client of a Clearing Participant. For further information on the Nominated Person structure, please see the Nominated Person Fact Sheet that can be found here.
