Clearing operation

KELER CCP provides clearing services for balancing transactions settled on the Information Platform (IP) operated by FGSZ Ltd, and for the Trading Platform (TP) operated by FGSZ Trading Platform Ltd., related to the following transaction types:

• balancing transactions (IP)
• intraday and day-ahead transactions (TP)

KELER CCP receives the matched commercial trades and the imbalance positions in batch, and based on the latter creates the imbalance transactions. At the moment the transactions are accepted KELER CCP novates the transactions. 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. In the case of commercial transactions, the purchase price related to the monthly financial settlement of the transactions is determined at trade price; in the case of balancing transactions it is determined at the balancing settlement price. The transactions are financially settled on an aggregated basis.

In order to mitigate risks KELER CCP applies real time financial limits with the involvement of the cooperating trading system, which ensures that commercial transactions are financially covered (pre-trade trading limit). KELER CCP applies ex ante limits to balancing transactions.

In order to ensure that the purchase price settlement requirement is met KELER CCP calculates turnover margin that shall be fulfilled until 9:00 am the following day, while the normal monthly default fund contribution requirement is to be met on the 2^nd second settlement day after the day of calculation.

Financial settlement of the transactions concluded on IP and TP takes place daily.

On IP and TP the trading participants become Clearing Members directly and can trade for their own account only. KELER CCP offers full segregation to segregate KELER CCP’s own assets and the assets of Clearing Members.

Related to IP and TP transaction clearing financial positions are settled daily. The settlement currency is euro (EUR).

Following the closing of the gas day, KELER CCP prepares the daily clearing reports to advise the Clearing Member on daily financial result. The monthly purchase price invoice is issued based on the daily clearing reports. Daily financial result is settled on the day after the daily clearing (in case it is a non-business day, on the following first settlement day) at 9:00 am, as an aggregated value of IP and TP transactions modified by the neutrality charge calculated by FGSZ.

The settlement positions for the purchase price amount adjusted with VAT corresponding to the VAT residence are formed in line with the transactions of the Clearing Member during the period, KELER CCP determines the purchase price of all transactions as a single net financial position.

The place of financial settlement is the Settlement Bank at the choice of the Clearing Member.

Until 9:00 am on Settlement Day the Clearing Members are required to provide the financial positions formed in the settlement accounts, from these accounts KELER CCP withdraws the funds for the entire amount (Partial financial settlement is not available). Parallel with this KELER CCP credits the settlement accounts of the obligees.

In addition to the settlement of financial positions Clearing Members are required to comply with the daily margin and default fund contribution requirements.

The deadline to meet the margin requirement is 9:00 am, while the normal monthly default fund contribution is to be made until 9:00 am on the 2nd (second) settlement day after the requirement is determined.

The transactions made on IP and TP are settled with physical delivery, however the system operator licensee, FGSZ controls and guarantees the process of physical delivery. KELER CCP is not involved in the process of physical settlement; it does not guarantee physical settlement.

The transactions made and cleared on the IP and TP markets are transactions with physical delivery, thus they are subject to purchase price invoicing. As part of the central purchase price invoicing (“self invoicing”), KELER CCP issues both the invoices of (in KELER CCP’s view) the buyers and sellers as well, based on the mandate stated in the applicable agreement on invoicing. The purchase price invoice issued includes VAT corresponding to the VAT residence. In relation to central purchase price invoicing, KELER CCP has joint responsibility for the issued invoices.

After the closing of the gas month, based on the daily clearing reports prepared by KELER CCP, the monthly purchase price invoice is issued and sent to the Clearing Member. Invoices are issued based on the „fungible” principle, for the applicable period.

In addition to the purchase price invoices KELER CCP issues fee invoices to the Clearing Members related to the transactions made on IP and TP platforms. Payment is based on the invoice issued by the 5th (fifth) business day following the subject month, the invoiced amounts are collected by debiting the Clearing Member accounts kept with the Settlement Bank.

Purchase price invoicing - How are invoices made?

Related to the clearing of IP and TP, KELER CCP prepares and sends daily and monthly clearing reports for the Clearing Members that can be viewed and downloaded from the interface operated by FGSZ as well.

Regarding all derivative transactions KELER CCP prepares the TR reports with respect to KELER CCP and the Clearing Member and then sends the reports to the KELER TR system. The KELER TR system forwards the reports to RegisTR.

As part of the TR service, based on the mandate received, KELER CCP prepares the reports for the Clearing Member clients as well, and based on the choice of the Clearing Member it sends these reports to the Clearing Member or directly to the KELER TR system.

Financial default occurs if the Clearing Member fails to meet the margin, default fund contribution requirement or the financial settlement requirement by the applicable deadline.

Once default is established, KELER CCP takes steps without delay to suspend the trading right of the defaulting Clearing Member and starts to take the available collaterals in line with the sequence of use stated in the General Business Rules.

Once default is closed KELER CCP calculates and collects the default fees.