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: