UAE – Mubasher: The Dubai Gold and Commodities Exchange (DGCX), in accordance with the International Derivatives Clearing House, will launch a Special Default Fund on Wednesday, 1 May with a minimum capital worth AED 36.7 million ($10 million), Al Bayan newspaper reported.
Dubai Commodity Clearing Company’s contribution amounts to 27% of total capital, which is good compared to other clearing markets, the region’s leading derivatives exchange said in a statement.
The newly launched fund is sufficient to cover the losses of the two largest clearing members in case of failure.
The fund will use the resources available to the clearing house for assets contributed by clearing houses which, under certain conditions, may be used under default management to cover losses or liquidity pressures on clearing members.
