SMXCC

With an objective of implementing the best clearing and settlement practices, SMX has incorporated its clearing corporation, Singapore Mercantile Exchange Clearing Corporation (SMXCC) which will perform the role of being the clearing house of SMX and will handling clearing, settlement and risk management functions. SMXCC will be a Central Counter party for trades executed on the SMX trading platform between the buyer and the seller. In order to protect market participants from any counter party credit risk, SMXCC will have in place a Settlement Guarantee Fund. The non-performance by one of the parties will not affect the other party, as SMXCC will step in and fulfil the obligations of the defaulting party through the Settlement Guarantee Fund. The guarantee of performance by SMXCC will provide immense confidence to the market participants as counter-party risk will be eliminated though this process and thereby ensure the integrity of the market.