NodalClear

DEFAULT RESOURCES

Nodal Clear employs many controls to reduce the risk of default. These include strict membership criteria for acceptance into the clearing house, risk limit controls on clearing members and their participants, as well as twice per day variation margin calls to prevent losses from accumulating in an account.

Should a clearing member be placed into default, Nodal Clear has the default resources shown in the figure below at its disposal, including $20 million of its own capital and a total Guaranty Fund of $131,533,596 as of May 16, 2017, to manage the losses incurred in the case of a clearing member default.

Nodal Clear Default Waterfall

Defaulter's Initial Margin
Defaulter's Guaranty Fund Contribution
Clearing House Contribution $20 Million
Guaranty Fund
Total Value $131,533,596 as of May 16, 2017
Unfunded contributions - assessment
Additional funding from surviving clearing members in the event the Guaranty Fund is exhausted
Service Continuity Phase
Based on Clearing House's Recovery Plans; includes measures such as voluntary contributions or variation margin haircutting
Service Closure