Managing Counterparty Risk

Counterparty risk is managed by setting limits. Without limits in place for a counterparty, it is impossible to conduct business with that counterparty.

Limits can only be set after reviewing the member’s information:

• their identification details

• its financial statements

• and, for the C2E Market trading platform, the specifically required informationunder the Risk Control Decree

The review process is managed through the limit matrix found under “Management” > “Manage My Organization’s Limits”:

Once the review is complete, when you click “Confirm,” we generate a time-stamped electronic record.

Once the review of the counterparty’s information is confirmed, the limits are set according to the same principles as the net commitment limits for the organization or a trader, as explained at in this article.

Note that you can revoke a counterparty’s access to its documents by clicking on its name in the limit matrix, then clicking the three dots in the upper-right corner: