Every Clearing Member must maintain cash and securities accounts for clearing and collateralization of transactions with the Clearing Facilities (or, in the case of accounts, with an account-holding bank). Further, it has given instructions to set up the required automatic debit/credit facility and has the required authorizations to sign as well as the pledge declarations.
The following cash and securities accounts must be opened:
Cash Settlement Accounts and Securities Settlement Accounts
- one or more cash account(s) for each clearing currency for clearing cash amounts with a Settlement Bank or Central Bank and
- one or more securities account(s) for clearing securities transactions with the CSD.
Cash Collateral Accounts and Securities Collateral Accounts at the Collateral Custodians
- one or more cash collateral account(s) for cash collateral and optional
- one or more securities collateral account(s) for the safekeeping of securities deposited as collateral.