independent guarantee

independent guarantee
A type of guarantee operated by clearing houses where losses caused by clearing member defaults are covered initially from the defaulting clearing member's assets (if any), and then from the clearing house's own resources. There is no guarantee fund contributed to by the clearing members with this type of guarantee, unlike the mutual guarantee where such a fund exists. Dresdner Kleinwort Wasserstein financial glossary

Financial and business terms. 2012.

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