Default Management

As of 30th September 2019, DCCC held $ 164.95 million in collateral.

DCCC has implemented a Default Fund (DF) that is sufficient to cover the losses of the two-largest Clearing Members (Cover-2). DCCC’s own contribution (“skin-in-the-game”) is approximately 27% of the total DF.

In the event of a default of a Clearing Member losses incurred in the management of the default would be met using the following Default Waterfall.

Credit Interest on Default Fund Contributions

DCCC shall pay Clearing Member’s credit interest on their Default fund contributions at a rate of 1.19% per annum for contributions from July to September 2019.