The purpose of the clearing guarantee system is to ensure safety of transaction clearing and settlements for all Members of the Clearing and Settlement House.
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Each Clearing and Settlement House Member provides collateral that reflects the scale of risk to which the clearing guarantee system is exposed on account of the transactions it clears.
Components of the clearing guarantee system
Collateral Margins
Collateral Margins are the main component of the clearing guarantee system for forward markets.
Transaction Margins
Transaction Margins are an element of the clearing guarantee system and are used to secure cash settlements.
Guarantee Fund
The Guarantee Fund is an element of the settlement guarantee system, which ensures the security of settlements even in the event of extreme market conditions.