Clearing model

NOS is offering two clearing models to the market participants, Direct Membership and clearing through General Clearing Members (GCM).

Direct membership

Applying for a Direct Membership means that NOS will have a one-to-one relationship with the company and the clearing member has a counterparty risk on NOS. The minimum membership requirements are listed in the Rulebook and under the Membership page

The benefits of being a direct member are:

• No intermediary charges by financial institutions
• A flexible and focused credit approval process optimising the margin regimes for a diverse mix of industrial players, shipping companies, trading houses and merchant banks
• A direct link with the approved marketplaces on the markets NOS clear
• No membership fee

General Clearer Model

A market participant choosing to clear through a General Clearing Member has a relationship and counterparty only with the GCM. The GCM has a joint and several liability for their client clearing accounts towards NOS. A general clearer model means that the client accounts with a GCM are protected in a default by the GCM as the GCM’s proprietary trading is segregated from and not netted with the client clearing accounts. 

You may choose to go through a GCM because:

• Already have a credit line with the bank and/or are clearing other commodities with one of our GCMs
• Have a registered entity in a country which has not been legally recognized by NOS.

Please contact us for a further discussion on how to clear with NOS.