BFX secures insurance cover from New India
Manama, June 17, 2010
The Bahrain Financial Exchange (BFX) has procured financial cover from the New India Assurance for enhancing the settlement services of the BFX Clearing and Depository Corporation.
This insurance provision implemented by the BFX supplements its Settlement Guarantee Fund (SGF) which in turn builds and sustains confidence in its clearing and 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.
'We are proud to offer this insurance protection as part of our value proposition to all BFX members, and we expect it to play a big role in further pushing our membership drive,' said BFX managing director and chief executive officer Arshad Khan.
'New India has the largest number of specialist and technically qualified personnel at all levels of management, who are empowered to underwrite and settle claims of high magnitude, and we are honoured to provide our services to the BFX,' said New India Assurance resident manager V Devanathan.
'We aim to not only offer insurance but assurance from our leading company.'
In addition to the SGF, the 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.
New India Assurance has announced that they will offer similar 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 Sharia-compliant financial instruments.
'The BFX has implemented elaborate multi-layered protections at every stage of transactions, therefore minimising the risk of default situations which may affect the exchange,' added Khan.
'We strongly believe that the efficient system of trading we are creating at the BFX will significantly boost multi-asset trading in the region,' he added.-TradeArabia News Service