Risk Management

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FXCH shall ensure that adequate risk assessment, risk monitoring and risk mitigation procedures and systems are in place on an ongoing basis to ensure the security and integrity on the FXCH service.

A) Member facing risk management

1 - Margin rates

In order to ensure that counterparty risk is adequately mitigated, FXCH shall ensure that Margin rates are assessed on an ongoing basis in order to reflect present and future market risks.

2 - Default Fund

In order to ensure that the Default fund is adequately funded, FXCH shall contribute a portion of clearing fees received, on an ongoing basis, provided that contributions to the Default Fund by Members are greater than the contributions made by FXCH.

B) FXCH internal risk management

FXCH shall identify and measure its internal risks including notably operational and financial risks, and shall ensure that risk is adequately mitigated.