SMXCC

With the objective of implementing the best clearing and settlement practices, SMX has incorporated its clearing corporation, the Singapore Mercantile Exchange Clearing Corporation (SMXCC). As the Exchange’s Clearing House SMXCC will handle clearing, settlement and risk management functions. SMXCC will be the Central Counterparty between buyers and sellers for trades executed on the SMX trading platform.

In order to protect market participants from any counterparty credit risk, SMXCC will have in place a Settlement Guarantee Fund. Non-performance by any one party will not affect the other party, as SMXCC will step in and fulfil the obligations of the defaulting party through the Settlement Guarantee Fund. Guaranteed performance on SMX products will provide immense confidence to market participants as counterparty risk will be eliminated. This process ensures market integrity.