A clearing fund is a shared financial resource maintained within a central clearing system to manage losses that remain after a member fails and its available collateral has been applied. Contributions from clearing members or other eligible guarantors can be drawn on under the system's default procedures to help complete affected trades and maintain payment and settlement operations. It therefore serves as a secondary risk-management buffer for exposures that cannot be covered by the defaulter's own resources.
Passende Formel
Source: European Central Bank (ECB) (source). This glossary entry is an independently worded adaptation of the cited information.