The Bahrain Financial Exchange (BFX), the first Multi-Asset Exchange in the Middle East and North Africa, announced today the procurement of a financial cover from The New India Assurance Co. Ltd for enhancing the settlement services of the BFX Clearing & Depository Corporation (BCDC), a wholly owned Clearing Corporation of the BFX.
This unique insurance provision implemented by the BFX supplements its Settlement Guarantee Fund (SGF) which in turn builds and sustains confidence in its clearing & settlement mechanism. The insurance affords the Exchange security against all financial transactions, which includes a first-of-its-kind coverage of the SGF to the Exchange and its members. The financial cover will be operated through The New India Assurance's Bahrain office.
In a comment, Mr. Arshad Khan, the Managing Director & Chief Executive Officer of the BFX and the BCDC, said, "We are proud to offer this insurance protection as part of our value proposition to all BFX members, and we expect it play a big role in further pushing our membership drive."
In addition to the SGF, this mutually beneficial insurance arrangement provides protection to the BFX against a wide number of risks, including incomplete transactions, infidelity of employees, loss of property, losses due to errors and omissions and losses arising from cyber crime, amongst others. The New India Assurance Co. announced that they will offer similar robust insurance protection to all BFX members who, through BFX's internationally accessible trading platform, will be able to trade in cash instruments, derivatives, structured products and Shariah-compliant financial instruments.
"The BFX has implemented elaborate multi-layered protections at every stage of transactions, therefore minimizing the risk of default situations which may affect the Exchange. We strongly believe that the efficient system of trading we are creating at the BFX will significantly boost multi-asset trading in the region," Khan concluded.
The New India Assurance is ranked as an "A - Excellent" insurance company by A. M. Best, the worldwide insurance rating and information agency.