Some jurisdictions mandate the clearing of particular derivative products through a central clearing counterparty (CCP). To clear through a CCP, an entity must be a clearing member (also sometimes referred to as a clearing broker). The types of products required to be cleared, and the surrounding legal framework, vary across jurisdictions.
The Committee received a request to clarify the accounting for centrally cleared client derivative contracts from the perspective of the clearing member.
The Committee concluded that the clearing member first applies the requirements for financial instruments. More specifically, the Committee observed that:
The Committee concluded that the principles and requirements in IFRS Standards provide an adequate basis for a clearing member to account for centrally cleared client derivative contracts. Consequently, the Committee [decided] not to add this matter to its standard-setting agenda.
The Tentative Agenda Decision was open for comment until 22 May 2017.