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 $185,871,601 as of March 16, 2020, to manage the losses incurred in the case of a clearing member default.