Your Trusted Clearing House

Overview

Risk Management

Dubai Clear LLC has a robust risk management framework to support its functions as a central counterparty (CCP). Members are required to post margins for all trades accepted for clearing by Dubai Clear. The Dubai Clear’s margin methodology is based on VaR (Value at Risk) margining on a 99% confidence interval. Dubai Clear also adopts stress testing and backtesting models to ensure adequacy of margin requirements.

Risk Management

Margins

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Dubai Clear has set a fully-funded settlement default fund comprising its own contribution and also contributions from clearing members to be used in case of an event of default.

Dubai Clear has the following types of margins:

  • DOL Margin

  • Initial Margin

  • Variation Margin

  • Fails Margin

  • Additional Margins

For further information, please refer to the ‘Margin Policy’ within the Regulations, Policies & Procedures.

Risk Management

Collateral Management

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Dubai Clear has a collateral management framework in place to accept approved collateral types approved by the regulator. Dubai Clear accepts only quality collateral with low credit, liquidity and market risks. Clearing Members and Settlement Agents can deposit collaterals with the CCP in the following types:

  • Cash Collateral

  • Bank Guarantee

  • Securities

For further information, refer to the ‘Collateral Policy’ within the Regulations, Policies & Procedures.

Risk Management

Margin Parameters

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Dubai Clear will publish margin rates for each security eligible for clearing. Margins are calculated using statistical methods using VaR margining on a 99% confidence interval. For the latest margin rates, please refer to the below:

Margin Parameters:

Issue Date:

Title:

 09/08/2020Margin Parameters with effect from 9th August 2020 
 08/07/2020Margin Parameters with effect from 8th July 2020
 07/06/2020Margin Parameters with effect from 7th June 2020
10/05/2020Margin Parameters with effect from 10th May 2020
12/04/2020Margin Parameters with effect from 12th April 2020

15/03/2020

Margin Parameters with effect from 15th March 2020