LSOC "only explicitly protect[s] the collateral value attributed to each customer as reported by FCMs" (CME Group, 2012, p.
Furthermore, any FCM residual interest in the cleared swaps customer segregated origin of the failed FCM at the CCP would be treated as customer segregated assets and would be protected under the LSOC framework (U.
The central clearing mandate and LSOC were meant to reduce systemic risk, but it was not entirely eliminated.
Barclays said that it had worked closely with a number of clearing houses in an effort to develop and meet client demand for an enhanced LSOC with Excess model which will allow client-specific excess value to be used to cover margin requirements, including variation loss.
Ray Kahn, head of OTC Deliveries said: "The enhanced LSOC with Excess model means that we can not only offer clients an added level of protection on their collateral, but also improve the efficiencies of the daily margin process.
Barclays has worked closely with multiple clearing houses to develop and meet client demand for an enhanced LSOC with Excess model, which allows client-specific excess value to be used to cover margin requirements, including a client s variation loss.
CME is pleased to bring the benefits of our LSOC with Excess service to Barclays clients, said Edward Gogol, Managing Director, Clearing Architecture at CME Clearing.
The LSOC with Excess model gives clients the ability to ensure their excess collateral is held at the clearing house and not at the clearing broker.
addresses the "art side" (sustainment coaching, teaching, and mentoring) of sustainment, the SOC addresses the "science side" (materiel management and asset or personnel cross-leveling).
This could be a task accomplished by an LSOC
that would parse out satellite bandwidth on a regional basis.
Paired with LSOC, it is a new way of doing business.
The 13th ESC, headquartered at Fort Hood, Texas, coordinates activities in the newly created LSOC West region, which encompasses all FORSCOM activities west of the Mississippi River (except for Louisiana) and liaises with ASC's 404th and 407th AFSBs.