Overview of the Risk Management Framework 
09/03/2016 
 

OTC Clear’s risk management framework is designed to ensure the financial performance of all contracts cleared by OTC Clear by adequately controlling credit, market and liquidity risks.

The key components of the risk management framework include:

 Clearing Membership Requirements
 Initial Margin
 Variation Margin & Margin Call
 Credit Risk Monitoring
 Financial Resources and Default Management
 
OTC Clear conducts independent validation of its risk management framework and measures annually.  Executive Summary of the validation report will be provided to clearing members upon request. Please contact OTC_Quant@hkex.com.hk for further information.