PAN-CLEAR is the clearing house of the exchange. The clearing house eliminates counter-party risk in trading as all trades are settled in real time. PAN-CLEAR can clear and settle trades in over 60 currencies for futures, options, swaps, stocks, bonds, CFDs, ADRs and other products. PAN-CLEAR has implemented proven risk control mechanisms to safe guard the integrity of the financial market. All clearing members must maintain a high level of financial integrity, meet minimum required credit ratings and operate separate segregated accounts for clearing.
PAN-CLEAR uses risk based margining calculated in real time. Margins are calculated and exposure is passed on to the trading platform for pre-trade risk management in real time.
Risk Analysis is calculated on “what if” scenarios which determine potential market exposure. These scenarios can be done on the individual account level, branch level or firm level. Price movement analysis can be completed on a single contract or security establishing the effect on margin requirements. With the high demand for risk management, PAN-CLEAR uses a combination of pre-trade, real-time and intraday risk management.
The clearing platform has been built with stability and scalability in mind. PANEX will always continue to improve its systems and services.
Advantages of Central Clearing include:
- Lower systemic risk
- Uniform standards
- Pre and Post default portability margin
- Segregated margin accounts
- Risk distributed through central clearing agents