Default waterfall - KASE Clearing Centre

The Default Waterfall protection system ensures market stability even in the event of a participant's default

Losses are covered in stages: first, the participant's own funds are used, then the common clearing fund, and, if necessary, resources of the central counterparty. This allows for a gradual and fair distribution of losses, maintains the financial stability of the system, and guarantees the completion of all settlements without risk to other market participants.

The structure of protection levels used in KACC

Individual collateral of a clearing participant on the stock and currency markets, determined by the Clearing Center using risk parameters for stress in order to cover the credit and market risks as well as systemic risk in transactions with financial instruments.

Individual rates of initial margin and stress concentration are established for financial instruments of the stock and currency markets.