What Are the Legal and Operational Challenges of Porting Client Accounts?
Legally, porting requires clear contractual agreements that allow the clearing house to transfer positions without the client's immediate consent in a default scenario. Operationally, challenges include the rapid valuation of positions and collateral, finding a receiving member with sufficient capacity and risk appetite, and the technical process of transferring the positions and assets between systems.
This must all be done under extreme time pressure to avoid market disruption and harm to the clients.
