Derivatives (MAOF) Clearing House
The MAOF Clearing House Ltd, is a subsidiary of TASE Ltd, who issues the derivatives traded on the TASE. The Clearing House is responsible for clearing derivatives traded on the TASE and for the exercise of the derivatives, according to the rules and terms. The MAOF Clearing House acts as a Central Counterparty (CCP) in derivatives clearing. Thereby the MAOF Clearing House assumes the risk that one of the parties may not complete as part of the transaction, will be covered by MAOF Clearing House.
Ensuring the proper operation of the Clearing House
In order to ensure its proper operation, the MAOF Clearing House collects collateral (cash, government bonds and T-Bills) from Clearing House members and monitors margin's members in real time through the online margin system (MABAT).
The Risk Fund
Calculation of margin amounts is based on the principles of the SPAN (Standard Portfolio Analysis of Risk) method, developed in 1988 at the CME (Chicago Mercantile Exchange), one of the leading derivatives exchange worldwide. In addition members are also required to deposit collateral in the Risk Fund, which serves as an additional safety cushion. The size of the risk fund is determined once a quarter as a function of the margin requirement of the members in the quarter preceding the calculation date.
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MAOF Clearing House Board of Directors
The MAOF Clearing House board of directors
comprises a maximum of 15 members. The Directors are appointed by the General Assembly, provided that at least three directors are independent directors and one director has professional qualifications (has experience in the capital market and in the clearing field).
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