Collateral

A clearing house must not only establish robust initial margin requirements. It must also ensure that the collateral to cover the margin requirements is of the highest quality, is held securely, and is available, without realistic legal challenge, when required. In selecting what is acceptable as collateral, NOS evaluates counterparty, legal, liquidity, and performance risk.
NOS accepts collateral in the form of cash and guarantees issued by approved banks. The guarantees are of a standard form drafted by NOS.