KELER CCP operates a guarantee system to make sure that in case of default by Clearing Members the securities and/or cash obligations are met towards the non-defaulting counterparty. The guarantee system consists of individual and collective guarantee elements as follows:
Multinet Markets
| Type |
Name |
Objective |
Eligible instruments |
|
Individual guarantee elements
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Basic Financial Collateral
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The Basic Financial Collateral is to be provided upon entry into the BSE Equities Section, Debt Section, the BÉTa market or MTS Hungary, on one occasion. The objective is to cover individual exposures arising from same day trading. Its amount is fixed for the individual trading venues and is published by KELER CCP in the applicable announcement. KELER KSZF leiratban.The amount of the Basic Financial Collateral can be supplemented with the liquidity currency deposit (LIDÓ) by markets if it is justified by the risk of products cleared in foreign currencies on the multinet markets cleared. The amount of LIDÓ is published in the applicable announcement jointly with the amount of the Basic Financial Collateral.
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In line with the provisions of the Conditions of acceptance of securities and currencies collateral.
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Initial Margin
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The amount of initial margin is determined by products and is published by KELER CCP in the applicable announcement on its website. The objective is to cover the potential change in the product price of at least two days, with a confidence level of at least 99%.
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In line with the provisions of the Conditions of acceptance of securities and currencies collateral.
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Variation margin
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On the multinet markets the variation margin is part of the initial margin (collateralized). It means that it is collected only if there is an unfavorable price movement in the product in which the market participants have open positions. Its value is calculated daily. On T it is the difference of the trade price and the same day closing price, on the following days it is the difference of the closing prices of the previous settlement day and the actual settlement day.
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In line with the provisions of the Conditions of acceptance of securities and currencies collateral.
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Additional Financial Collateral
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It is to manage Clearing Member individual risks, to sanction the violation of certain obligations, to supplement the clearing member minimum capital or to cover any (temporary or permanent) shortage of individual or collective guarantee elements.
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In line with the provisions of the Conditions of acceptance of securities and currencies collateral.
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Collective guarantee elements
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Default fund contribution
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The Clearing Members form a risk pool to contribute individually to the default fund of the multinet market (TEA). The objective of the collective guarantee element is to cover the basically stress risks that are uncovered by individual guarantee elements. Upon default, if the individual collaterals of the defaulting Clearing Member and its collective guarantee fund contributions and the dedicated own resources of KELER CCP allocated to the multinet market are insufficient to cover the shortage, the default fund contributions of non-defaulting Clearing Members will be used also
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HUF bank money only.
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