ACFEX clear is the clearing house of the exchange. The main objective of the clearing house is to eliminate counter-party risk in trading. The clearing house can clear trades in over 60 currencies. ACFEX clear will operate 4 main clearing houses across the continent, settling trades in futures, options, swaps, stock, bond, CFDs, ADR and other products.
Risk management through the clearing house will lower the cost associated with trading. The exchange has implemented proven strong risk control mechanisms to safe guard the integrity of the financial market. All clearing members must maintain a high level of financial integrity, meet minimum required credit rating and operate separate segregated accounts for clearing.
The exchange uses risk based margining which is calculated in real time. The margins are calculated and exposure passed on to the trading platform for pre-trade risk management. End of day calculation and offset compensation are done either through debit and credit movement of funds.
Risk Analysis is calculated on what if scenarios which determine potential market exposure. Price movement analysis can be done on a single contract or security establishing the effect on margin requirement. With the high demand of risk management, ACFEX Clear uses a combination of pre-trade, real-time and intraday risk management.
The clearing platform has been build with stability and scalability in mind. ACFEX will always continue to improve its system and services.
Advantages of Central Clearing include:
- Lower systemic risk
- Uniform standards
- Pre and Post default portability margin
- Segregated margin accounts
- Risk distributed through central clearing agents