Crisis Management Teams, to identify any issues for resolution, and to enhance technological capabilities. When there are material changes to the rules and procedures relating to default management, consultation with Clearing Members will be performed and feedback on the changes received will be reviewed.
Principle 14: Segregation and portability A CCP should have rules and procedures that enable the segregation and portability of positions of a participant’s customers and the collateral provided to the CCP with respect to those positions.
14.1	A CCP should, at a minimum, have segregation and portability arrangements that effectively protect a participant’s customers’ positions and related collateral from the default or insolvency of that participant. If the CCP additionally offers protection of such customer positions and collateral against the concurrent default of the participant and a fellow customer, the CCP should take steps to ensure that such protection is effective.
In accordance with Regulation 23 of the SF (Clearing Facilities) Regulations, APEX Clear segregates customers’ collateral from Clearing Members’ collateral and APEX Clear’s own assets. Customer collateral will be protected from the default of Clearing Members as well as any insolvency of APEX Clear. At present, APEX Clear does not offer individually segregated accounts at customer level and all customer collateral are commingled in multiple omnibus bank accounts and accounted for on a per Clearing Member basis. Under the Clearing Rules, positions and/or collateral may be transferred from the books of a Defaulting Clearing Member to one or more surviving Clearing Members or otherwise be liquidated. APEX Clear allows Customers to choose another Clearing Member to transfer their positions to in the event of a default of their existing Clearing Member. The transfer of the positions will be done provided that: (i) Identity of Customer is known to APEX Clear; (ii) Customer positions are identified; (iii) Receiving Clearing Members are agreeable to the transfer; (iv) Defaulting Clearing Member or its liquidator is agreeable to the transfer; and (v) APEX Clear is satisfied with the financial health and viability of the receiving Clearing Members. Under APEX Clear’s Default Management Plan, a customer is given 24 hours to indicate to APEX Clear its intention to port its positions to an alternative Clearing Member, failing which APEX Clear will liquidate the positions. Upon transfer of the positions to the alternative Clearing Member, the alternative Clearing Member will deposit the required collateral with APEX Clear and collect initial margins from the customer.
14.2	A CCP should employ an account structure that enables it readily to identify positions of a participant’s customers and to segregate related collateral. A CCP should maintain customer positions and collateral in individual customer accounts or in omnibus customer accounts.
Clearing Members are expected to maintain individual accounts for each disclosed customer or omnibus accounts for a group of undisclosed customers in the APEX Clearing System. Customer positions and the required collateral are clearly identified in such individual accounts. In all cases, customer positions and collateral are clearly identified and segregated