Safeguard System

Argentina Clearing maintains a strong safeguards system should a Clearing Member default. This system foresees a sequence for allocating resources until canceling the full defaulted amount. This risk-hedging model was structured as a hybrid form, combining different coverage models (Defaulters pay/Survivors pay).

The sequence for the liquidation of collateral in case of default by an ALyC is the following:

  • Collateral deposited in the Third-Party Transactions Guarantee Fund, if appropriate, and in the Clearing Member’s Obligations Guarantee Fund.
  • Collateral deposited in the Clearing Member’s Default Guarantee Fund, pro-rated in proportion to the contributions of each member.
  • Special Guarantee Funds or Insurances set up for this purpose by Argentina Clearing, should there be any.
  • Argentina Clearing Fund pursuant to Sect. 45 of Act no. 26831.
  • Argentina Clearing’s Shareholders’ Equity.
  • Adherent Exchange’s Shareholders’ Equity.

Documentation