Manama, 16 June 2010: 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."
V.Devanathan, Resident Manager, New India Assurance "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 honored to provide our services to the BFX. We aim to not only offer insurance but assurance from our leading company".
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.
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About BFX:
Bahrain Financial Exchange (BFX) is a pioneering cross border and multi product exchange in the Middle East and North Africa, and will be internationally accessible, to trade cash instruments, derivatives, structured products and shariah-compliant financial instruments. The BFX is regulated by the Central Bank of Bahrain (CBB) and has an in-principal approval.
The BFX is a wholly owned initiative of Financial Technologies Group (FT Group), which currently owns one of the world's largest networks of 10 exchanges connecting fast-growing economies of Africa, Middle East, India and South East Asia.
The BFX has set up its Clearing and Depository Corporation (BCDC) to clear and settle the contracts it trades.
The BFX Training Institute is an international standard in - house training facility, providing world class conventional and Islamic financial training and education courses.
The BFX is a member of the Futures and Options Association (FOA), the International Islamic Financial Market (IIFM), the Accounting and Auditing Organization for Islamic Financial Institution (AAOIFI), and a member of the Associations of Futures Markets (AFM).
www.bfx.bh
About New India Assurance:
New India is a leading global insurance group, with offices and branches throughout India and various countries abroad. The company services the Indian subcontinent with a network of 1068 offices, comprising 26 Regional offices, 393 Divisional offices and 648 branches. With approximately 21000 employees, 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.
New India has been rated "A-" (Excellent) by A.M.Best Co., making it the only Indian insurance company to have been rated by an international rating agency. Rating based on following factors:
- Superior Capital Position
- Strong Operating Performance
- Only Company to develop significant International operations, long record of successful trading outside India
www.newindia.co.in
For more media enquiries, please contact:Narjes Yousif
Press & PR Executive
Bahrain Financial Exchange
Phone: +973 16 511 511
Email: narjes.yousif@bfx.bh
Afrah Faraj
Hill & Knowlton
Phone: +973 17533532
Email: afrah.faraj@hillandknowlton.com
© Press Release 2010
