How Does the Process of “Porting” Client Accounts Work during a Member Default?
"Porting" is the transfer of a defaulting member's client positions and collateral to one or more solvent clearing members. When a member defaults, the clearing house works to identify other members willing and able to take on the client accounts.
The goal is to move these accounts swiftly to ensure minimal disruption for the clients, who are not themselves in default. This process helps maintain market stability by protecting client assets and preventing a forced liquidation of their positions.
