BFX Clearing and Depository Corporation (BCDC)
The Bahrain Financial Exchange (BFX) provides all clearing, settlement, depository & risk management activities through its Clearing Corporation, the BFX Clearing & Depository Corporation (BCDC). The BCDC is a wholly owned subsidiary of the BFX, which becomes the central counterparty for all transactions on the Exchange through the process of novation, whereby the BCDC acts as a seller to all buyers and buyers to all sellers. The BCDC provides settlement guarantees for all transactions executed on the Exchange platform, which eliminates counter party risk and provides a high degree of security and confidence to market participants.