SIX x-clear AG

Risk management

As the Central Counterparty, SIX x-clear assumes the risk on the buy/sell side and is liable towards the respective SIX x-clear member for the fulfilment of obligations (both on the money and securities side) arising from stock exchange trades. This means that the Central Counterparty assumes the counterparty risk. SIX x-clear guarantees the fulfilment of these obligations even in the event of default of a member; however, it does not guarantee timely execution of the transactions on settlement date.

The primary objective is to minimise potential risks through effective and accurate risk management. In the event of default of a member, coverage should be primarily granted by the default member itself. Therefore, risk minimisation is achieved through the following measures:

• Safeguarding against the expected market risk resulting from a member's default by means of coverage by margins and collateral pledged by the member
• Pledging of collateral to cover unpredictable risks in the default fund with the aim of eliminating systemic risks (domino effect)
  
  

For detailed information on SIX x-clear's products and services, please contact your Customer Relation Manager or the Risk Management team.