Clearing is a process that guarantees and confirms the transactions prior to settlement between the Participants, to establish final positions for settlement. Muqassa was established to clear exchange traded products on open offer basis, where Muqassa will place itself between the counter parties at the time of matching.
Clearing members will have access to clear one of the top regional liquid markets, with a diverse range of products. Muqassa will start its Clearing activities with clearing index futures and after that a wide range of products will be added.
Risk Management’s Three Lines of Defense (3LoD) model is what Muqassa follows to maintain an integrated and comprehensive risk management system that insures that its risk management framework identifies, measures, monitors and manages the risks that it bears from Clearing Members as well as other key institutions.
Muqassa has a low risk appetite for financial, liquidity, operational, market and credit concentration risk. This appetite helps drive the setting of conservative values when deciding on key measures such as the Default Fund Cover or Investment Duration.
Muqassa’s risk management policy, procedures and systems and controls have been developed to meet both CPMI-IOSCO’s Principles for Financial Market Infrastructures (PFMIs) and international best practices.