Collateralizing clearing exposure
SIX x-clear Ltd provides clients with risk collateralization solutions to meet the highest standards of day-to-day exposure management.
For Swiss and UK-based trading venues, SIX x-clear Ltd uses SIX SIS (the Swiss central securities depository) as its collateral bank for cash equities and fixed income clearing by placing collateral in the form of cash or securities. SIX x-clear Ltd supports segregated cash or securities collateral accounts for each collateral type (margin, default fund and inter-CCP fund).
In the case of the Norwegian-based trading venue Oslo Børs, Clearing Members of SIX x-clear Ltd can provide cash as collateral by posting cash to a designated cash account with a cash collateral bank in the name of SIX x-clear Ltd by way of transfer of title or by pledging securities to SIX x-clear Ltd with an appointed CSD/ICSD.
SIX x-clear Ltd uses DnB Bank ASA and Danske Bank A/S as cash collateral banks. The Clearing Members will be assigned separate cash accounts for margin requirements and contributions to the Default Fund.
Securities such as equities, equity certificates and fixed income that are held in a VPS account (the Norwegian CSD) that are pledged to SIX x-clear Ltd and interest rate instruments held in a pledged account with Clearstream Bank Luxembourg will be included in the margin requirements and be given a positive collateral value.