Get started

Clearing

Understanding clearing at SignalMarkets.

SignalMarkets offers access to event contracts listed on a CFTC-registered exchange, through its guaranteeing futures commission merchant (FCM), Foris DAX FCM, LLC d/b/a OG.com Broker.

SignalMarkets is a guaranteed introducing broker: it introduces customers to the FCM and does not hold customer funds. The exchange matches, clears, and settles trades, and the FCM carries customer accounts and holds customer funds.

The sections below explain how trade processing, settlement, collateral, outcome resolution, regulatory requirements, and fees work under this arrangement.

1. Trade clearing and matching infrastructure

Trade clearing establishes how transactions are processed and how the resulting obligations between market participants are managed.

Clearing infrastructure

SignalMarkets offers access to event contracts listed on a CFTC-registered exchange, through its guaranteeing FCM, Foris DAX FCM, LLC d/b/a OG.com Broker ("OG.com Broker"). The exchange, North American Derivatives Exchange, Inc. d/b/a OG.com Markets ("OG.com Markets"), is registered with the CFTC as both a designated contract market (DCM) and a derivatives clearing organization (DCO), and it clears and settles trades. SignalMarkets does not clear trades or hold customer funds.

Order matching and processing

OG.com Markets operates a central limit order book that matches orders under its rulebook, and matched trades are submitted for clearing.

Clearing responsibilities

  • OG.com Markets (exchange and clearinghouse): order matching, clearing, and settlement.
  • OG.com Broker (futures commission merchant): carries customer accounts, holds customer funds, and acts as SignalMarkets' guaranteeing FCM.
  • SignalMarkets (guaranteed introducing broker): introduces customers, handles customer onboarding, marketing, and customer communications, and does not hold customer funds.

2. Settlement and payout mechanics

Settlement determines how financial obligations are fulfilled and how positions are paid following the resolution of a market.

Settlement currency

All event contracts are settled in U.S. dollars. Supported funding, withdrawal, and payout methods are those offered by OG.com Broker from time to time, as described in the customer account agreement, and may change without notice. Payouts are credited to the customer's account and may be withdrawn using a supported withdrawal method.

Payout calculations

Event contracts pay $1 per contract if the specified outcome occurs and $0 if it does not. Each contract's specification sets the exact payout and controls in case of any inconsistency.

Example (for illustrative purposes only; excludes fees): For a contract asking "Will the Fed raise interest rates?", you buy one "Yes" contract for $0.60. If the Fed raises rates, you receive $1, a profit of $0.40. If it does not, you receive $0, a loss of $0.60.

Settlement timelines

Payouts are credited after the outcome is determined under the OG.com Markets rulebook and the relevant contract specification. Timing may be affected by, among other things, a pending review or dispute, unavailable source data, holidays, market disruptions, or bank and payment-provider processing.

3. Collateral and margin requirements

Collateral and margin arrangements help support financial obligations arising from market participation. The applicable requirements depend on the contract structure and the rules governing the relevant market.

Collateral requirements

All positions are fully collateralized. The collateral required for a position is the contract price multiplied by the number of contracts, as set out in the exchange rulebook. Fees are charged separately and do not change the collateral required.

Leverage and margin

Margin trading and leverage are not available.

Custody and management of collateral

SignalMarkets does not hold customer funds. Customer funds are held by OG.com Broker in segregated customer accounts at one or more depositories, as permitted under CFTC rules, and are kept separate from OG.com Broker's own funds in accordance with the Commodity Exchange Act and CFTC regulations. OG.com Markets, as the clearinghouse, holds collateral for open positions.

4. Outcome resolution and resolution sources

Market resolution determines the outcome used to settle a contract. Clear resolution criteria and reliable sources of information help participants understand how a market's final result is established.

Resolution criteria and sources

Contract outcomes are determined by OG.com Markets under its rulebook, using the source named in each contract's specification. Customers should review each contract's specification for its resolution criteria, designated source, and relevant dates.

Resolution transparency

The OG.com Markets rulebook and each contract's specification govern how outcomes are determined. Both are available on the OG.com Markets website.

5. Regulatory and compliance framework

Clearing and settlement operate within the legal, regulatory, and contractual framework applicable to the relevant entities and markets.

Clearinghouse and regulatory status

North American Derivatives Exchange, Inc. d/b/a OG.com Markets is registered with the CFTC as a designated contract market (DCM) and a derivatives clearing organization (DCO), and it clears the event contracts available through SignalMarkets. Foris DAX FCM, LLC d/b/a OG.com Broker is registered with the CFTC as a futures commission merchant and is a member of the National Futures Association (NFA). SignalMarkets is registered with the CFTC as a guaranteed introducing broker and is an NFA member.

Customer funds and asset protection

SignalMarkets does not hold customer funds. Customer funds held by OG.com Broker are segregated as described in OG.com Broker's disclosure document. Segregation is not a guarantee against loss. Accounts are not covered by the Securities Investor Protection Corporation (SIPC), and customer funds are not FDIC-insured.

Applicable rules and disclosures

SignalMarkets offers access to event contracts listed on a CFTC-registered exchange, through its guaranteeing FCM, Foris DAX FCM, LLC d/b/a OG.com Broker. The OG.com Markets rulebook and contract specifications, and OG.com Broker's disclosure documents and customer account agreement, are available on their respective websites and govern in all cases.

6. Clearing fees and transaction costs

Fees and transaction costs can affect the overall economics of a position. Participants should be able to understand the charges that may apply when entering, maintaining, settling, or closing a position.

Clearing and settlement fees

Fees are charged per contract, in addition to the contract price, as set out in the official fee schedule published by OG.com Broker. The fee schedule governs and may be amended from time to time.

Other transaction costs

Banks or payment providers may charge their own fees for funding or withdrawals. These fees are set by those providers, not by OG.com Broker.

Fee transparency

Customers should review the official fee schedule and each contract's specification before trading. Fees are charged in addition to the contract price and do not change the collateral required for a position.

Understanding the clearing process

SignalMarkets offers access to event contracts listed on a CFTC-registered exchange, through its guaranteeing FCM, Foris DAX FCM, LLC d/b/a OG.com Broker. OG.com Markets matches, clears, and settles trades. OG.com Broker carries customer accounts and holds customer funds. SignalMarkets introduces customers and handles onboarding and customer communications.

For market-specific information, consult the contract specification, the OG.com Markets rulebook, OG.com Broker's disclosure documents, and the official fee schedule.