Physical Settlement

Related to derivative clearing certain transactions are settled with securities or physical delivery, these transactions are as follows:

  • futures equities transactions (‘FISZER’ trade)
  • futures commodity transactions

The securities transactions with delivery are settled at 10:00 on the 2. (second) clearing day after expiry, based on the so-called Delivery Versus Payment (DvP) principle. For the trades that remain open upon expiry, KELER CCP determines the securities and cash settlement positions in line with the segregation. First, KELER CCP settles the available quantity of securities, i.e. it takes the settled securities from the seller to the KELER CCP technical account and credits the securities account of the buyer, and then it debits the cash account of the buyer with KELER or the MNB against the KELER technical account and credits the cash account of the seller.

In the Commodities Section some products are settled with physical delivery, with settlement to be completed until the 45. (forty-fifth) day after expiry (T+45 where T = Transaction Day), however, the delivery cycle can be extended based on the statement of the counterparties. KELER CCP guarantees physical settlement only if settlement is with warehouse warrants. As counterparty involved in physical settlement, KELER CCP ensures that the seller gets the payable purchase price for the quantity delivered. As a precondition of this, the buyer is required to issue the delivery certificate on the commodities it received. The counterparties involved in the physical settlement of the transaction are matched with so-called drawing.