Lines of Defense (Waterfall Structure)
In the event of a Clearing Member default, or a simultaneous default of more than one Clearing Member, the Defense Lines (order of realization of collateral) come into effect to close out the relevant positions.
Default Fund Structure
Default funds are designed to cover potential market risks that are not covered by the margin model in the event of a Member default and in times of stressed market conditions.
Inter-CCP Risk Management
SIX x-clear operates in different trading platforms in interoperability with other CCPs. Interoperability-based risk exposures occur in markets where more than one CCP is active and is mitigated separately from Clearing Member-based risk exposures.
Real-time Risk Management
SIX x-clear uses a real-time margining model based on the industry-standard Value-at-Risk model. SIX x-clear Norwegian Branch uses the close-to-real-time MIDAS margin model for equity transactions.
Collateralizing clearing exposure
SIX x-clear provides clients with risk collateralization solutions to meet the highest standards of day-to-day exposure management.
SIX x-clear will generally accept different types of collateral as permissible collateral. Any permissible collateral deposited is accounted for at market value subject to a haircut. For further details, see the Lending Norms sheet.