Clearing & Membership » Clearing Model

• Clearing Process
  Only a market participant which has been admitted as a Clearing Member may be a counterparty of MEX Clearing. If a market participant does not itself hold a Clearing License, it must clear its transactions via a CM. In such cases, the contractual party of the Non-Clearing Member (NCM) will not be MEX Clearing directly, but rather the CM which in turn is the contractual party of MEX Clearing. Customers have contractual relationships solely with the respective market participants which execute customer orders and settle the transactions that have been made. br />
  Clearing Membership is restricted to institutions. They may not lease or rent out their membership to anyone else.
• Possible Contractual Relationship upon Conclusion of Transaction
  
  
  

  Each Clearing Member is obliged to demand from its customers and NCMs margin amounts which are at least as high as the levels that result from the MEX Clearing method of calculation.

  At MEX, the give-up trade functionality allows market participants to hand over a trade during order entry, or subsequent to matching, to a Clearing Member other than the one they have a clearing arrangement with. The financial clearing guarantees which must be put up by all Clearing Members are placed in the MEX Clearing guarantee fund, so that a sufficient safety buffer is available with the Clearing Corporation in the case of the insolvency of a member.

  In addition to traditional way of clearing services for derivatives, MEX Clearing also offers clearing services including Risk Management, Collateral Management, and the supplementary service Delivery Management as part of the settlement process within the Central Counterparty (CCP) concept. The following graphic provides an overview of the clearing functionalities offered: