As a function of a CCP, SIX x-clear Ltd novates the trade in real-time as soon as it is accepted in the system for clearing.
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Reduced counterparty risk: SIX x-clear Ltd automatically acts as the counterparty for all its members that trade clearing-eligible securities on all trading venues serviced.
Post-trade anonymity: As a clearing house, SIX x-clear Ltd occupies an intermediary position between the trading parties. This ensures full post-trade anonymity.
Real-time risk management: SIX x-clear Ltd employs a unique real-time risk management model combining market risk based on the VaR of the traded security and credit risk based on the risk rating of the clearing member. Individual risk positions and margin requirements of clients are calculated and updated in real time throughout the trading day. Risk positions are offset across trading venues and cash products, reducing overall collateral requirements. SIX x-clear Ltd assumes some of this risk by contributing its own assets in its defense lines and inter-CCP collateral.
Settlement efficiency: SIX x-clear Ltd provides optional trade date netting across trading venues (where supported by the market) and offers efficient settlement at the respective home CSDs of clearing-eligible securities.