Insurance Fund Protection
Meaning ⎊ Reserves used to cover negative-balance liquidations and prevent socialized losses, maintaining system integrity.
Netting Efficiency Ratio
Meaning ⎊ Metric measuring the effectiveness of netting in reducing the total volume of settlements.
Rollover Risk
Meaning ⎊ The financial risk and cost associated with transitioning a position from an expiring contract to a future expiration date.
Equity Netting
Meaning ⎊ Consolidating multiple trading obligations into a single net balance to reduce settlement volume and systemic counterparty risk.
Clearinghouse Risk Engine
Meaning ⎊ A central system that calculates real-time risk, margin requirements, and exposure for all participants on an exchange.
OTC Desk Settlement
Meaning ⎊ Private large volume asset transfers conducted directly between parties away from public order books.
Central Clearing
Meaning ⎊ The process of a central entity acting as an intermediary to guarantee the performance of trades.
