KELER CCP, as General Clearing Member of European Commodity Clearing AG (ECC), provides General Clearing Member service on the energy markets cleared by ECC as central counterparty:
- EEX European Energy Exchange
- EPEXSPOT European Power Exchange
- HUDEX Hungarian Derivative Energy Exchange (Power segment)
- HUPX Hungarian Power Exchange
- NOREXECO
- PXE Power Exchange Central Europe
- SEEPEX South Eastern European Power Exchange
- SEMOpx Single Electricity Market Operator Power Exchange
As part of the service KELER CCP provides clearing and guarantee undertaking for the cleared spot and derivative market transactions for energy market traders.
During energy market clearing KELER CCP receives the already matched and accepted transactions from the institution clearing the markets as central counterparty. There is no novation provided by KELER CCP during the clearing of energy market transactions (it does not clear transactions as central counterparty), however, as General Clearing Member it guarantees the financial settlement of the transactions concluded by the energy market Non-clearing Members both towards the clients and ECC.
Spot market transaction clearing is for the purchase price at the trade price, while for derivative market transactions variation margin is calculated for the open positions, and then purchase price is settled for the transactions that remained open after expiry.
In order to mitigate risks KELER CCP may apply quantity and/or value limits for the energy market Non-clearing Members on the traded markets.
In order to ensure the purchase price and the variation margin settlement requirements are met, KELER CCP calculates daily margin requirements. The margin requirement is to be met until 10:00 a.m. the following day. The amount of the required margin is at least the margin calculated by ECC. KELER CCP is entitled to distribute the default fund determined by ECC to the Non-Clearing Members in case of exceeding the threshold set in the corresponding announcement.
Energy market transaction purchase price settlement, derivative transaction variation margin settlement and settlement due to the physical delivery of futures transactions occur at 10:00 a.m. on the 1st (first) clearing day after the transaction is made (on T+1, where T = Transaction Day).
For more information on KELER CCP's General Clearing Member (GCM) service, please check out the video below.
