Clearing

• Initial Margins
• Exchange Fees & Concessions
• Guide to SFE Clearing and Margining
• Clearing Contacts

Guide to SFE Clearing and Margining

SFE Clearing Corporation (SFECC) provides a central counter-party (CCP) clearing service for all futures and options contracts traded at the Sydney Futures Exchange (SFE) between SFE Clearing Participants.

Central to CCP clearing is the process of 'novation', which involves SFECC interposing itself between a buyer and a seller (SFE Clearing Participants) and becoming the central counterparty or principal to all trades.

The process of novation provides a number of benefits for users including surety of payment, margin netting, risk management and liquidity.

Key to the financial integrity of SFECC as the CCP is the administration of both Initial and Variation Margins that minimise SFECC's exposure to changes in market prices (i.e. Market Risk) and counter-party failure (i.e. Credit Risk).

In addition to margins, SFECC imposes strict financial requirements and criteria on its Clearing Participants. For more information on the financial integrity of SFECC please go to the ASX website.