Default Management

CDCC's margining system is designed to ensure that in the event of default, the Corporation has sufficient margin to cover the defaulting Clearing Member's exposure. CDCC Rules, including its Default Manual, specify how default will be handled and how losses will be shared. The Default Manual describes CDCC's possible courses of action in case of a Clearing Member's default, including management of a default situation, authority, communication with a Clearing Member and implementation of remedies.

Some clients of a suspended Clearing Member can benefit from the portability of their position and associated collateral value under the Gross Client Margin protection regime. For more details, please refer to the section on the CDCC client protection regime.

For more details on Default Management please see CDCC's Default Manual: