Elements of the guarantee system

KELER CCP operates a guarantee system to make sure that financial obligations towards the non-defaulting party can be met in case of default by the Clearing Members. The guarantee system consists of individual and collective collateral elements as follows:

Balancing Platform
Type Name Objective Eligible instruments
Individual guarantee elements Basic Financial Collateral

The Basic Financial Collateral is to be provided upon entry into the TP market, on one occasion. The objective is to cover risks arising from trading. Its amount is fixed and is published by KELER CCP in the applicable announcement.

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

The turnover margin is determined based on historic and imbalance data, its objective is to determine margin requirements proportionate to risks, related methodology and parameters are published by KELER CCP in the applicable announcement on its website. 

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 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 TP individual position limit is exceeded.
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 Collective guarantee fund contribution

The Clearing Members form a risk pool to contribute individually to the default fund of the TP platform (TP KGA). 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 guarantee elements of the defaulting Clearing Member and its collective guarantee fund contributions and the dedicated own resources of KELER CCP allocated to the TP market are insufficient to cover the shortage, the collective guarantee fund contributions of non-defaulting Clearing Members will be used also.

HUF bank money only