For the transactions to be cleared, the NCM has to contact a CM of his choice. The legal relationship between a NCM and a CM is defined by the Clearing Conditions and the NCM Agreement. Within this relationship, the CM takes over fi nancial settlement in order to perform financial transactions through one interface.
Admission by ECC constitutes a fundamental precondition for exchange trading for NCMs. It ensures that settlement, delivery and hedging of the transactions are secured by the clearing house.
The following requirements are necessary for admission by ECC:
- completion of a Know-Your-Customer (KYC) Questionnaire if requested by ECC and passing of the ECC KYC assessment or other applicable access policies of ECC
- completion of a corresponding NCM Agreement with the co-operating Clearing Member and ECC
- the clearing license of the Clearing Member co-operating with said Non-Clearing Member has to comprise the product concerned
- the conclusion of a balance group agreement with the respective TSO, in case of physical delivery