How Does the Failure of a Major Clearing Member Impact the CCP’s Guarantee Fund?

The failure of a major clearing member can trigger the use of the guarantee fund if the defaulter's posted margin is insufficient to cover the losses. The CCP will use the defaulter's contribution first.

If losses persist, the mutualized portion of the fund, contributed by all non-defaulting members, will be used, potentially requiring those members to replenish their contributions.