One aspect of Software is Clearing, which is designed to protect each trader in every transaction. The goal is also to maintain integrity of all contracts created through the Software. Every valid member receives membership in Clearing.
The purpose of Clearing is to mitigate risk and manage any perceived risk for all transactions. Clearing Division has established solid relationships with all Partners and Agents. Clearing becomes the intermediary for every transaction as the counterparty to eliminate much of the risk involved. Clearing becomes the buyer for the seller and the seller for the buyer so they can feel confident about entering into a transaction with minimal risk.
Since trading on this platform is conducted globally, it allows the traders to know the other party and mitigate risk. Because Clearing is at the other end of every transaction, buyers and sellers can feel confident in making sound trading decisions.
Benefits of participating in a centrally cleared environment include the following:
Neutrality: Clearing acts as a neutral party on each transaction with nothing to gain, which meets neutral risk management standards
Transparency: knowledge of pricing in the market as well as metrics for the market; financial safeguards are in place and recognized risk management practices
Security: Performance system mitigates risk and secures the position of the buyer or seller