Settlement Infrastructure
Eliminating Principal Risk in Emerging Market FX, by Design.
Sika's platform operates as a multilateral netting engine and central counterparty, providing PvP settlement finality across a growing suite of emerging market currency pairs.
Settlement Process
From Obligation to Finality in Five Steps.
01
Obligation Submission
Participants submit FX obligations via their chosen channel within the settlement window.
02
Netting Calculation
Net positions calculated across all participants and currency pairs. Up to 80% gross reduction.
03
CCP Novation
Sika becomes the central counterparty. Bilateral credit exposure eliminated entirely.
04
PvP Settlement
Simultaneous settlement of both legs. Both pay, or neither does. No principal risk.
05
Confirmation
Real-time confirmations, netting efficiency reports, and regulatory outputs delivered.
What Sika Eliminates
Bilateral settlement riskNo more exposure between individual counterparties, as all risk flows through Sika as CCP.
Principal loss on defaultPvP mechanics ensure both legs settle simultaneously, or neither does.
Operational inefficiencyMultilateral netting reduces gross settlement obligations by up to 80%.
Capital over-allocationReduced settlement obligations free capital currently reserved against bilateral exposure.
Technical Specifications
RESTful API with sandboxFull STP API with testing environment. Typical integration: 6–10 weeks.
RTO 2 hrs · RPO zeroActive-active geographically distributed infrastructure. No single point of failure.
RTGS integrationConnected to Central bank RTGS systems through a network of partner banks across participating markets.
Risk Management
Built to the CPMI-IOSCO Standard.
Sika's risk management framework is designed to meet the Principles for Financial Market Infrastructures, the international standard for clearing houses and settlement systems.
Credit Risk
Margin & Default Fund – CHM (CCP product)
Participant eligibility, margin methodology, and default fund contributions calibrated to cover simultaneous default of the two largest participants under extreme stress scenarios.
Liquidity Risk
Prefunded liquidity – ClearNet Settlement Platform
Prefunded liquidity sufficient to complete settlement on the default day of the largest participant in each currency. Liquidity arrangements with central banks and primary providers.
Operational Risk
Resilience & Continuity
RTO of 2 hours and RPO of zero for critical systems. Active-active infrastructure. Business continuity plan tested biannually and available to regulatory authorities on request.
Default Management
Pre-agreed Rulebook
Clear, pre-agreed playbook for participant default, including position porting, auction procedures, and loss allocation, aligned with FSB and CPMI guidance.