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Role of Clearing House
 

The Clearing House is an in-house unit in the exchange with the function of ensuring the financial integrity of each trade for investors and hedgers. The Clearing House, takes on the role to oversee that all counter-parties abide by the terms and conditions once they enter into a futures contract. In practice, orders are 'cleared' by means of the clearing House acting as the buyer to all sellers and the seller to all buyers.

AFET Clearing House is divided into 3 divisions which are the Clearing Division (clearing transactions between AFET and broker members), Risk Management Division, and Delivery Division.

 

Last Updated : Friday, May 16, 2008
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