This paper explores the factors that influence portability, building on existing work on this issue. In their final report on client clearing and porting, published in September 2022, the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) asked the industry to carry out further work on this topic. CPMI-IOSCO also stated that they “welcome and encourage industry efforts to enhance portability, so that client clearing access can continue to be provided following a default and forced liquidations are avoided”.
This paper considers porting across all product classes, given that many of the identified issues are common across over-the-counter and exchange-traded derivatives. It explores the various factors that have been identified as relevant to porting, suggesting potential ways to increase the likelihood of successful porting, where appropriate. It also highlights that the porting of positions might not be the most desirable outcome for clients in all circumstances.