How Stock exchanges ensure the traders counter party risk?

[Divya]

All the traders are connected to exchange only through certified brokers.  And it is brokers responsibility to check that the orders are placed with proper depts in traders’s account.  Exchange will take from brokers deposit if any misplaced orders from their client, to solve the settlement with counter party.

[santhisrinivan]

All the traders are connected to the exchange through certified brokers. The broker responsibility is to check that the required amount is in his account to avoid counter party risk.

[Vineet Kumar Nair]

Exchange asks the brokers to take caution deposit from their registered traders as a measure to counter party risk.

[Linto Chacko]

In order to ensure the counter parity risk, the traders are connected to the stock exchange through registered/ certified brokers. It is the duty of brokers to ensure that the party is having enough amount in his account inorder to trade.

[Priya Vignesh]

There are some registered /ceritified brokers. the stock exchange can ensure the counter party risk through brokers.

[Author]

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