KYC Procedure

A company applying as a DCP Clearing Member at ECC has to pass the KYC (Know-Your-Customer) process at ECC. He needs to provide a signed and completed KYC questionnaire if requested by ECC. Additionally the following documents are required:

• Commercial registry extract (no older than 3 months) in original
• Financial statements from the last fiscal year. If no financial statement is available, business plan of the business activity for the next 3 years
• Powers of attorney of the legal representative and the corresponding passport copy (scanned color copy)
• Organizational chart explaining the shareholder/ownership' structure, up to the Ultimate Parent level as well as the direct and indirect beneficial owners.

Based on the information given in the KYC questionnaire, the accompanying documents and other information (e.g. Internet, Reuters) ECC calculates a score. Based on this score the applicant is assigned to a risk category which will decide whether to accept or refuse the company’s application.

In case the DCP CM notifies any material change according to ECC Clearing Conditions section 2.1.5 ECC might request an updated KYC Questionnaire.

Admission Process

The admission by ECC is divided in two parts:

• Admission as DCP Clearing Member:
  At the beginning of each membership stands the admission as DCP CM. Therefore, a DCP-form needs to be handed in.
• Admission for Clearing of different products:
  The second part of admission is the application for clearing of different spot products traded on ECC’s Partner Exchanges. Therefore, TP-forms have to be sent in.
• To receive access to ECC’s clearing and settlement systems the DCP CM has to provide the respective technical form.
• For the limit distribution process the respective operational form is required. More details on the process and accepted collaterals can be found here.

After receiving the originals of all required documents, ECC will commence the admission process. The documents will be examined for completeness as well as correctness. For your convenience you may also send us a scan in advance in order to avoid mistakes and guarantee a swift admission process.

As soon as all confirmations are available, admission will be issued and information sent to the Partner Exchange.

Admission Process - Overview

Extension of a DCP CM Membership - New Products

To extend the existing DCP Clearing  license to another product the respective Trading Participant Form has to be submitted to ECC. A DCP CM can only trade on spot markets which fulfill ECC’s requirements to the DCP model.

Connected Banks

Connected banks are institutions which maintain one or more Settlement Accounts for DCP Clearing Members and have entered into an agreement with a Forwarding Bank of ECC. A forwarding bank is an institution that maintains a Settlement Account for ECC and that is connected to several connected banks.

The following table contains a list of financial intermediaries that currently offer the service of a Connected Bank to DCP CM of ECC. Please be advised that the decision to accept a company as a client for its payment services rests with the Connected Bank alone.

Is your preferred bank not on the list? ECC’s Forwarding Bank, ABN AMRO N.V., maintains a large network of connected banks. Please reach out to our Financial Settlement Team to check whether your preferred bank’s BIC codes are connected to ABN AMRO Bank N.V and whether your bank is a direct participant in TARGET2.

Limited DCP CM Membership – nEHS Transactions only

This DCP CM membership is strictly limited to the participation in nEHS Transactions.

Deviating from the preconditions for a regular DCP CM membership, a liable equity of at least 25,000 EUR is sufficient. Furthermore a nEHS registry account needs to be opened at DEHSt, replacing the requirement to open a settlement account with a bank and to conclude a balance group agreement with a TSO. The application for admission is submitted via the respective portal, no admission forms need to be handed in separately.

Further information about the nEHS and the respective admission process may be found here

Approved Markets

Admission as Trading Participant at a spot market which is approved by ECC to be DCP ready is one of the prerequisites to become DCP Clearing Member.

The following markets have been approved by ECC and will continuously be enhanced by ECC.