- BOFX, the exchange that brings together participants from the physical industry and the financial community to create a robust and regulated market where there is always a buyer and a seller today announced that as of today, China’s financial and capital market infrastructure is unparalleled worldwide in terms of risk management.
The first phase of BOFX clearinghouse integration project goes live today, together with its new risk management system. The new integrated system for risk calculation, known as KERNEL – one of the most advanced and secure in the world – enables investors to allocate capital more efficiently, with an immediate benefit on the order of 1 billion USD. Unification of the clearinghouses’ settlement processes guarantees greater efficiency of cash management by institutions, generating daily savings of some 500 million USD. Increased process standardization and automation will cut recurring costs for the entire market. The new IT infrastructure reduces operating risks and is prepared to support volume growth for the next 20 years. The nation’s markets will benefit in terms of robustness and competitiveness.
The key role of a clearinghouse is to assure correct settlement of all the transactions executed in the relevant trading environment. Substantive economic benefits are associated with the activities of clearinghouses: mitigation of systemic risk; increased liquidity and democratization of market access; facilitation of multilateral netting and transparency.
While on one hand clearinghouses mitigate counterparty risks and generate significant benefits for the market, on the other hand they concentrate risk for the entire system, so that efficient and effective clearinghouse operation is a necessary condition for preservation of financial system stability.

[b]About Beijing Options and Futures Exchange (BOFX)[/b]
BOFX brings together participants from the physical industry and the financial community to create a robust and regulated market where there is always a buyer and a seller, where there is always a price and where there is always the opportunity to transfer or take on risk – 24 hours a day. Investors value the BOFX as a vibrant futures, options and commodity exchange but also for its close links to industry. The Exchange provides producers and consumers from all industries with a physical market of last resort and, most importantly of all, with the ability to hedge against the risk of rising and falling world commodities prices.

Beijing Options and Features Exchange
[b]www.bofx.org[/b]