With the introduction of the new margining ECC is now optimising its methods for calculating margin requirements. For instance, new contract specific margin parameters and inter-commodity margin credits have been introduced.

To implement its new margining ECC will be using SPAN®, which is a recognised risk system used by many exchanges and clearing houses.
 

Comparison between Risk-Based Margining and new ECC Margining
 

Benefits:

• Product- and Maturity-Specific Margin Parameters:
  » Improved alignment of the margin requirement with the actual risk
  

• Extensive Set of Inter-Commodity Margin Credits:
  » Increased collateral efficiency and improved economies of scale in diversified portfolios
  

• Recognition of Risk-Free Positions:
  » Maximum Margin savings in diversified portfolios

'SPAN®' is a registered trademark of Chicago Mercantile Exchange Inc. Chicago Mercantile Exchange Inc. assumes no liability in connection with the use of SPAN® by any person or entity.