Guarantee fee is a key instrument in the risk management and guarantee management system, using by UCH in order to minimize risks of clearing members.
Payment of the guarantee fee is one of the conditions for participation in exchange trading on commodity exchanges with which UCH has concluded a clearing agreement, as it ensures the financial stability of transactions, protects the parties to transactions from non-fulfillment of obligations and contributes to the stability of organized commodity markets. This is a preventive control mechanism that minimizes potential risks and ensures reliable fulfillment of the clearing member's obligations arising from its participation in trading and under concluded contracts/transactions/operations.
Guarantee fee (margin) is a type of guarantee fee consisting of highly liquid assets (funds, products and/or other assets specified by the regulations of the NSSMC for these purposes and/or internal documents of the UCH), that are credited/reserved/blocked/provided by the UCH, including through interaction with the delivery operator or other person, in order to secure the obligations of the clearing members and clients of the clearing members, including for the purpose of settlement, securing settlement and/or delivery or arranging for settlement and/or delivery, and which are recorded on the clearing accounts of the clearing members and clients of the clearing members.