Elements of the guarantee system

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

Basic Financial Collateral

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.

In line with the provisions of the Conditions of acceptance of securities and currencies collateral.

Initial Margin

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%.

In line with the provisions of the Conditions of acceptance of securities and currencies collateral.

Variation margin

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.

In line with the provisions of the Conditions of acceptance of securities and currencies collateral.

Supplementary collateral

The objective is to supplement the clearing member minimum capital or cover any (temporary or permanent) shortage of individual or collective guarantee elements. Supplementary collateral can be imposed in the following cases:

  • Failure to meet the minimum capital requirements determined by KELER CCP for Clearing Members, in this case the supplementary collateral amount equals the amount required to meet the minimum capital requirement.
  • If the amount of the multinet market default fund (TEA) is insufficient on any day to cover the risks arising from the stress tests calculated daily by KELER CCP, supplementary collateral is imposed up to the amount of the shortage on the Clearing Members due to which the shortage arises.

In line with the provisions of the Conditions of acceptance of securities and currencies collateral.

Additional Financial Collateral

 It is to manage Clearing Member individual risks, to sanction the violation of certain obligations.

In line with the provisions of the Conditions of acceptance of securities and currencies collateral.

Collective guarantee elements

Default fund contribution

 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

HUF bank money only.