Bilateral contracts

After a bilateral trade has been matched are the counterparties made know to each other. The two parties must then agree on a bank guarantee to reduce to counterparty risk. The size of the bank guarantee depend on the counterparty, but is often agreed as 10 % of the underlying Svalue of the contract.

Bilateral contracts are settled every month as the party receiving the settlement is responsible for issuing an invoice to the counterparty.