In August 2012, the European Commission adopted the Regulation on OTC Derivatives, Central Counterparties and Trade Repositories, also known as the European Market Infrastructure Regulation (EMIR).  One of its key risk mitigation measures is a central clearing regime for derivatives similar to that adopted in the U.S. under the Dodd-Frank Act.  See “Comparing and Contrasting EMIR and Dodd-Frank OTC Derivatives Reforms and Their Impact on Hedge Fund Managers,” Hedge Fund Law Report, Vol. 6, No. 36 (Sep. 19, 2013).  To protect counterparties in the event of the failure or default of a clearing member or central clearing party, EMIR requires a client’s collateral to be segregated, which can be achieved in a number of ways.  A recent program explored the three basic models of asset segregation, the risks and costs of each and how an asset manager’s own structure may affect the choice of segregation model.  The program was hosted by Julia Schieffer, founder of DerivSource Limited, and featured Jaki Walsh, a buy-side consultant at Derivati Consulting Limited.  This article summarizes the key points discussed during the program.  See also “Interest Rate Swap Compression for Hedge Fund Managers: Mechanics, Fee Savings, Risk Consequences and Regulatory Context,” Hedge Fund Law Report, Vol. 8, No. 8 (Feb. 26, 2015).