Collateral Management

FMDQ Clear, through its efficient systems, manages cash and non-cash collateral for covering margin requirements for transactions in a manner that delivers capital efficiency for market participants. Accordingly, non-cash collaterals, for instance, which are posted for this purpose are valued daily using market prices, taking into account applicable allowances for the liquidity risk of each collateral and pending transactions; and is then evaluated to ensure the collateral value is sufficient to cover the participant’s margin requirement(s).