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 Any Client or broker who wants to trade in the Exchange needs a Clearing Member to clear all its trades because only a market participant who has been admitted as a Clearing Member is permitted to act as a counter party to trades in Cambodian Derivatives Clearing House PLC. Clearing Members are licensed by Mex Cambodia invoking various qualifications which includes high net worth as well. If a market participant does not itself hold a Clearing License, it must clear its trades through a Clearing Member. Each Clearing Member is obliged to demand from its NCMs , margin amounts which are best decided by Mex Cambodia only.
The following graphic provides an overview of the clearing process of Mex Cambodia Commodity Futures Exchange
Exchange » Clearing Member » Non-Clearing Member » Client
The financial clearing guarantees which must be put up by all Clearing Members are placed with Cambodian Derivatives Clearing House PLC, so that a sufficient safety buffer is available with the Clearing House in case of the insolvency of a Non Clearing Member. |