Clearing Member Application Process

We helped onboard one of a Tier 1 global investment bank’s EU entities to the major European CCPs across all product groups including listed derivatives, OTC, cash equities & repo

The challenge

As part of the requirements for an assumed “hard Brexit”, our Client (a Tier 1 Global Investment bank) had to onboard one of its EU entities to the major European CCPs across all product groups including Listed Derivatives, OTC, Cash Equities & Repo. In order for our Client to continue to service EU 27 clients post Brexit, direct clearing membership needed to be applied for over 10 clearing houses for the EU entity. These would require new full on boarding by CCPs. These requirements needed to fit into a wider programme covering exchange and client migrations, for which there was a complex structure with a large number of inter dependencies

Our approach

We deployed a blended team of 2 BAs and 2 SMEs (covering Products and CCPs) to the existing programme to manage the full on boarding process at the CCPs

The Sionic team quickly performed a detailed review of the on boarding requirements and agreed a governance process with CCPs. A runbook and execution plan for each CCP were created to capture the requirements and manage the on boarding process

The key stakeholders were identified and inter linked processes agreed to manage dependencies and coordinate the progress and escalation process. The team also offered guidance and advice where key process improvements could be found

Sionic reviewed and participated in the migration strategy and related test phases for the clearing houses in scope

The deep insight and fundamental understanding of the CCP onboarding process, paired with the knowledge of the client’s internal infrastructure and stakeholder map, enabled the team to overcome any foreseeable risks in advance

Our impact

Our ability to provide risk and clearing SMEs, who understood the CCP onboarding process and risk applications expedited the progress of the project.

  • The memberships for the EU entity at the CCPs were approved and progressed to a full go live.
  • The team defined processes and frameworks for CCP on boarding, testing and migration, producing detailed documentation which could be used for planning and execution in future similar initiatives.
  • The client developed a high degree of confidence and certainty in our planning and approach and through the team’s effective management of migration issues, was fully aware of the risks, issues and pain points and able to mitigate them effectively.
  • We also raised a number of issues within the programme that the client had not identified, enabling successful remediation.

Meet the team

Stephen Loosley

Managing partner

Kieran Choate

Principal consultant