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.

SIX x-clear Ltd has a Default Fund with ring-fenced segments for cash products (Cash Market Default Fund segment) and derivative products (Derivatives Default Fund segment) in place to avoid spill-over effects and reflect the Clearing Members’ choice of "solidarity level" in the event of a Member default for the chosen asset classes only. Each Member is obliged to provide a contribution to the Default Fund.

For efficiency reasons, the Default Fund is fixed in size and the contribution will be recalculated once a month.

The clearing services per trading platform are allocated to the Default Fund segments as follows:

Default Fund
segments
Trading platforms Intero-
parability
Claered
asset
classes
Fixed Income SIX Swiss Exchange (SSX) No Bonds
Cash Products SIX Swiss Exchange (SSX) Yes Equities
  London Stock Exchange (LSE) Yes Equities
  Oslo Børs Yes Equities
  NASDAQ OMX Stockholm Yes Equities
  NASDAQ OMX Helsinki Yes Equities
  NASDAQ OMX Copenhagen Yes Equities
  Aquis Exchange Yes Equities
  Cboe Europe Equities Yes Equities
  Equiduct (Börse Berlin) Yes Equities
  NASDAQ OMX Nordic Yes Equities
  Traiana Yes Equities
  Turquoise Yes Equities
  UBS MTF Yes Equities
Derivatives Oslo Børs Yes Derivatives
Securities
Lending & 
Borrowing
Oslo Børs No Securities
Lending &
Borrowing