Overview:

AD Clear acts as a Clearing House for the ADX Derivatives Market, providing Central Clearing Party (CCP) services for trades involving listed financial instruments. Its main objective is to maintain the efficient and secure functioning of the Market.

AD Clear's approach includes a strong risk management framework that integrates an innovative gross margining concept. This method enables independent margining of each account on a portfolio basis, utilizing the Delta Hedge methodology. This methodology aligns closely with the SPAN compatible methodology, which is widely recognized as a leading margining system globally. As a result, the margin requirement for each client account is aggregated into a single requirement for the respective clearing member, while house positions are margined separately.

The risk management measures adopted by AD Clear ensure that exposures are adequately collateralized and aims to reduce the likelihood of a clearing member defaulting on its obligation. Furthermore, in the unlikely event of such default, AD Clear has in place a robust contingency to manage the default thereby preventing a systemic effect to the Market.

AD Clear is dedicated to safeguarding its members and their clients by promoting its services in a fair, transparent, and non-discriminatory manner. In its role as a risk mitigator, AD Clear actively engages in consultation processes regarding regulatory changes and the introduction of new regulations and services.