General Description

KELER CCP provides clearing services for the natural gas markets operated by CEEGEX Ltd. and HUDEX Energy Exchange Ltd. for the following transactions:

  • intraday and day-ahead transactions (CEEGEX)
  • derivative transactions (HUDEX gas segment)

KELER CCP receives the matched futures transactions real time and upon receipt novates them. Transactions on the spot market are received and processed in batch, trades concluded from 18:00 on the previous clearing day until 18:00 on the present clearing day are subject to clearing. With novation KELER CCP interposes itself between the counterparties of the original transaction and 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. In relation to CEEGEX, the trading system calculates real time financial limits which ensures that only financially covered orders are accepted by the trading system. In case of an uncovered position the order is cancelled, thus matched transaction cannot be created.

In order to ensure that the purchase price and the variation margin settlement requirements are met, KELER CCP calculates daily margin (turnover margin, initial margin) and default fund contribution requirement. The margin requirement is to be met by 9:00 am the following day, while the normal monthly default fund contribution requirement is to be met on the 2. (second) 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 9:00 am on the 1. (first) clearing day after the transaction is made (on T+1, where T = Transaction Day).