In order to improve the infrastructure and security of our customers, keeping a guard and greater transparency in our operations , PWM, joins the largest international network of Clearing House Association , with several clearing and custody funds for customers worldwide.
Depending on the geographic region where you are and the type of account you have with the company one of our clearinghouses will be assigned.
The heart of an electronic operations system is the Clearing House.
A clearing house is an institution whose primary function is the protection of the derivatives market, which is responsible for complying with all its obligations to operate in the derivatives market. That is, it serves as reciprocal creditor and debtor in all transactions.
The main functions of a Clearing House are:
- Provides transparency in the management and control of counterparty risk. The House agreed to follow a process to settle its well defined obligations and inform all Participants on risk management procedures used and the resources that are there.
- Keep track of all operations performed on electronic markets, ensuring that each of its members has the necessary financial capacity to perform the operations, and that the obligations they entail are duly honored.
- To act as an intermediary or mediator in futures transactions, ensuring their transactions both parties (buyer and seller), the chamber members are asked to maintain their margin with the same clearing house
- Minimize the use of credit and funding operations. The netting greatly lessens volumes anchoring operations and therefore the credit requirement thereof.
- Minimize the rate of defaults. The process of compensation obligations reduces the requirement of resources in the settlement of transactions, significantly reducing the rate of defaults also it eliminates chains breaches.
To report transactions through the Clearinghouse is to be a member of it. Each of the brokerage firms must report their operations to the Clearinghouse and for membership is necessary to have financial strength and integrity.
Some of the Clearinghouses of this network are:
- First Clearing
- G.A. Ecum
- Global Quality Certification Business
- LME Clear Limited
- Mesirow Financial
- MK Hooper Trading
- SIT Trading
The main financial centers on which such Clearinghouses has bank relations are:
|AFRICA MAURITIUS||/ SEYCHELLES|
|ASIA PACIFIC HONG KONG||/ SINGAPORE|
|EASTERN EUROPE LATVIA||/ CYPRUS|
|EUROPE GERMANY||/ SWITZERLAND||/ LUXEMBOURG|
|LATINAMERICA MEXICO||/ BAHAMAS||/ BERMUDA|
|MIDDLE EAST UNITED ARAB EMIRATES||/ SIDNEY|
By joining this international network, our compay can guarantee that our customer’s assets are well-protected, segregated and that operations are feasible to be easily crossed . Our custodians ensure that its assets are backed not only with words but with more rigorous testing and regulations and protections of independent third parties.
In PWM we embrace this responsibility, as it ensures that our interests are always aligned with the interests of our customers.
Come to one of our executives who, can guide you on the clearing house that best suits your interests and needs.