Overview

General Description

KELER CCP provides clearing services for the natural gas markets operated by CEEGEX Ltd. and HUDEX Ltd. in the following segments:

  • CEEGEX spot gas market
  • HUDEX futures gas market

KELER CCP receives the matched futures transactions real time and upon receipt it novates them. Transactions on the spot market are received and processed in batch, trades concluded from 16:00 on the previous clearing day until 16:00 on the present clearing day are subject of clearing. With novation KELER CCP interposes itself between the counterparties of the original transaction and it becomes the buyer of the seller and the seller of the buyer. This way KELER CCP eliminates counterparty risk. Transaction settlement on the spot market is executed at trade price for the purchase price, while on the futures market variation margin is calculated for the open positions (mark-to-market), and then purchase price is settled based on the final settlement price for the transactions that remained open for delivery after expiry.

In order to mitigate risks KELER CCP sends information about the available collateral assets of the Clearing Members to CEEGEX. The platform operator calculates real time financial limits based on which only financially covered orders are accepted by the trading system. Transaction cannot be concluded if there is no cover.

In order to ensure that the purchase price and the variation margin settlement requirements are met KELER CCP calculates daily margin and default fund contribution requirement. The margin requirement is to be met by 8:15 the following day, while the normal monthly default fund contribution requirement is to be met on the second (2.) settlement day after the day of calculation.

The purchase price settlement of the spot transactions concluded on CEEGEX, the variation margin settlement of HUDEX futures transactions and settlement related to the physical delivery of futures transactions take place at 8:15 on the first (1.) clearing day after the transaction is made (on T+1 where T = Transaction Day).