Financial security for the market is assured by the
clearing house, which establishes and enforces rules and guidelines on the
financial aspects of all exchange transactions. The clearing house checks,
settles and reports each day's business and guarantees the fulfilment of each
contract. This is assured through the payment of margins and the collection of
all outstanding obligations from members within 24 hours. In addition members
pay into a permanent guarantee fund, enabling the clearing house to assume
financial responsibility if a member defaults.
The clearing house also assigns tenders and
re-tenders of deliverable coffee after ensuring each lot meets certain set
standards of quality, storage, packing and so on.