Controlled Settlement Timelines
On SCXM, trades are settled on T and the delivery period is up to T+1. Where possible, delivery obligations are settled during the daily settlement run on T. Anything not fully delivered on T remains as an outstanding payable or receivable balance. These outstanding settlements are collaterized to cover the overnight risk.
Liquidation in the Case of Default
In the event of failed delivery, payment or response, SCXM holds the right to liquidate a participant's full or partial position to release collateral and offset the loss.
The SCXM Guaranty Fund
In addition to employing sophisticated pre-trade risk controls, post-trade credit usage monitoring, and counterparty credit checks, Seed Digital Commodities Market ("SCXM") has decided to further safeguard its participants against counterparty defaults by establishing the SCXM Guaranty Fund. More information can be found on its dedicated FAQ page.