8. MARGIN REQUIREMENTS
FXCH requires margin to be posted to the Members accounts as it deems necessary, based on a stress-test and risk assessment that it operates regularly on products the Members are trading.
8.1 Super Margin Requirements
In an effort to maintain an efficient and competitive service to its Members, FXCH shall endeavour to maintain competitive margin rates and fees. In parallel, FXCH's primary responsibility is to ensure that risk management and monitoring is of a standard which reduces market and counterparty risk to a commercially acceptable minimum.
Various circumstances and events may tend to increase market risk including, but not limited to, such events as political turmoil, armed conflict, natural disasters, terrorist attacks, changes in monetary policies or legislation.
In the event that FXCH's Risk Monitoring Committee identifies one or more events that, in its assessment, is likely to increase market volatility significantly beyond historical averages, resulting in increased market risk beyond what FXCH's standard margin rates are designed to mitigate against, FXCH may increase its margin rates either for a specified time or until the catalyst event has subsided.
Super Margin requirements may take effect either from a specified future date and time, or may take effect immediately and without prior notice in the event of a sudden and unforeseen catalyst event.
Super Margin requirements may be imposed for one or several currencies, depending on the likelihood of the catalyst event affecting a given currency. Upon implementing Super Margin requirements, FXCH Risk Committee shall continuously monitor the catalyst event and shall withdraw Super Margin Requirements as soon as the catalyst event has subsided.