| 1. Membership criteria |
- |
To ensure a sound structure of the CCP |
OMIClear only accepts as Clearing Members entities with a reduced credit risk based on a robust internal risk assessment (Credit Risk Policy).
Please see Instruction B02/2014 - Requirements for Clearing Members. |
| 2. Margins |
Clearing Members |
To cover potential losses of risk takers (“defaulter pays” principle) |
Initial Margin methodology based on member’s portfolio (“SPAN” concept);
Variation Margin / Premium Margin / MtM - covering market risk resulting from market price fluctuations (collateralized or daily cash settled);
Other margins.
Please see Instruction B10/2014 - Calculation of Margins and Settlement Values. |
| 3. Additional guarantees (when applicable) |
Clearing Members |
To cover potential losses of risk takers (“defaulter pays” principle) |
Additional collateral required by OMIClear for clearing members with equity capital or risk level values below the pre-defined membership thresholds.
Please see Instruction B02/2014 - Requirements for Clearing Members. |
| 4. Clearing Fund contribution |
Clearing Members |
To cover potential losses of risk takers (“defaulter pays” principle) |
After exhausting margins and additional guarantee of defaulting clearing member its contribution to the clearing fund will be used to cover the losses resulting from the default event.
Please see Instruction B07/2014 - Clearing Fund. |
| 5. OMIClear dedicated own resources |
OMIClear |
To incentivise robustness of OMIClear’s risk management framework and alignment between CCP and market interests (“CCP pays” principle) |
OMIClear’s dedicated own funds (SIG amount + autonomous reserve) are put at risk in default waterfall before accessing to non-defaulting clearing members funds. SIG amount shall be replenished within 20 business days.
Please see Instruction B12/2014 - Default Waterfall. |
| 6. Clearing Fund contributions of non-defaulting clearing members (pre-funded) |
Clearing Members |
To cover potential losses of risk takers (mutualisation; “survivor pays” principle) |
Clearing members must contribute with pre-funded collateral to OMIClear’s clearing fund, proportionately to their recent risk profile (initial margin amounts) based on a mutualisation principle.
Please see Instruction B07/2014 - Clearing Fund. |
| 7. OMIClear additional own resources |
OMIClear |
To incentivise robustness of OMIClear’s risk management framework and alignment between CCP and market interests (“CCP pays” principle) |
OMIClear’s additional own funds (SSIG amount) are put at risk in default waterfall before accessing to non-defaulting clearing members additional responsibilities. SSIG amount shall be replenished within 20 business days.
Please see Instruction B12/2014 - Default Waterfall. |
| 8. Additional responsibilities of non-defaulting clearing members (not-prefunded) |
Clearing Members |
To cover potential losses of risk takers (mutualisation; “survivor pays” principle) |
If OMIClear’s additional own resources are exhausted, OMIClear has assessment powers to request additional collateral to non-defaulting clearing members (not pre-funded).
Please see Instruction B07/2014 - Clearing Fund. |
