When you segregate cash for an entity, you can choose whether to have the system segregate cash for derivatives in the custody basis you create for that entity. If you leverage position and cash segregation for derivatives, the system expects entity to clearing broker relationships to exist. Eagle Accounting additionally needs to segregate derivatives processed for that entity on the non custody accounting basis because cost is notional and the system determines cash based on the lot closed.

When you do not segregate cash for an entity, and do not maintain a custody basis, you can still elect to segregate derivatives. In that cases the system segregates the positions by clearing broker code.

The system can segregate the following types of derivatives:

• Futures. The system can segregate both futures with variation margin and futures without margin.
• Options. The system can segregate both options on futures with margin and options on futures without margin.
• Cleared Swaps. The system can segregate exchange cleared swaps. This applies to credit index swaps, credit default swaps, and interest rate swaps where the security has the Cleared Security field set to Yes. The system does not segregate bilateral, or uncleared, credit index swaps, credit default swaps, and interest rate swaps, and does not segregate currency rate swaps. 
• Total return swaps. The system can segregate total return swaps.

When you segregate derivatives, the system uses the clearing broker code value as an additional position-level criteria to establish uniqueness and drive the method of segregation. You must define entity to custodian and clearing broker relationships, and then link cash accounts to those relationships.