| The certainty of clearing requirement stems from the need to prevent trades failing at the point of novation at the clearing house and to limit the associated complexities and costs involved. In order to provide certainty of clearing it is a pre-requisite to ensure that the appropriate credit is available from their clearing member for a participant to complete a trade with a counterparty at the point of execution. There is much debate in the industry concerning the best approach to take with respect to ensuring that certainty of clearing is enforced and a number of working groups have been established to discuss and come to agreement on a preferred solution. |
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| In order to provide certainty of clearing it is a pre-requisite to ensure that the appropriate credit is available from their clearing member for a participant to complete a trade with a counterparty at the point of execution. |
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