MiFID II - Post trade requirements

MiFID II - Post trade requirements

Post trade requirements

Clearing timeframes

MiFIR requires CCPs to accept or reject clearing of a transaction within 10 seconds of receiving the transaction or receiving the receipt of a clearing member’s acceptance or non-acceptance, in the case of transactions executed on a bilateral basis. LSEG CCPs will review the transaction workflows to ensure these timeframes are met, where applicable.

Indirect clearing

The provisions on indirect clearing deal with the protection of clients further down the clearing chain, i.e. clients that have a contractual relationship with a client of a clearing member. This can enable the indirect client to clear its transactions with a CCP. EMIR introduced indirect clearing for OTC derivatives.

MiFIR has developed and enhanced the original EMIR requirements on indirect clearing and extended this to exchange traded derivatives. CCPs are now required to offer two types of indirect client account models as well as meeting requirements around default management and porting. LSEG CCPs already offer an indirect Omnibus Net account model across all asset classes and LSEG CCPs will adapt their current offering to meet the new requirements.