Clearing Services

    Central Counterparty

    For all transactions transferred to ECC, ECC acts as a central counterparty which places itself between the seller and the buyer. ECC and its Clearing Members assume the trading participants’ counterparty risk and exploit the entire netting and cross-margining potential until settlement.
     

    Risk Management

    ECC uses a comprehensive risk management system to manage counterparty risk. ECC provides protection against the default of counterparties through a system consisting of many elements:

    • Daily profit and loss settlement
    • Margins for open net positions based on the size of the position and the volatility of the underlying
    • All Clearing Members and ECC contribute to a mutual Clearing Fund
       

    Straight-Through Processing

    A connective IT landscape supports all clearing and settlement functions, provides secure transaction management at low transaction cost, and integrates all Partner Exchanges, Clearing Members and trading participants.

    Settlement Services

    Settlement

    Settlement services include:

    • Payments for Variation Margin
    • Cash settlement
    • Option premiums and deliveries
    • Physical delivery/nomination
       

    Payments

    Financial settlement of transactions between ECC and its Clearing Members is based on central bank funds. The payment system of the European central banks contributes considerably to ECC’s highly reliable settlement procedures.

    Deliveries

    ECC is a clearing house specialised in the settlement of deliveries. ECC's physical settlement experiences includes:

    • Nomination of grid-bound products (power and natural gas) within the transmission grid of currently 31 European transmission system operators from 18 countries,
    • Managing deliveries of EU Emissions Allowances Certified Emission Reductions, French Capacity Guarantees and Guarantees of Origin at European registries.

    Support

    The ECC Clearing & Settlement Team supports Partner Exchanges, Clearing Members and trading participants in their daily work. This contains any kind of question during the admission, settlement and clearing process.

    For any questions concerning physical delivery the Physical Settlement Team is available 24 hours, 7 days a week.

    Admission-related questions can be addressed directly to the Member Readiness Team.

    Clearing and settlement at ECC

    As the central counterparty ECC takes over clearing and settlement for the exchanges of EEX group as well as a number of further partner exchanges. Learn more in the video.

      

    Notice:

    To activate the video, please click on the picture. Please note that after activation your data will be forwarded to YouTube.

    Clearing at ECC – Want to know how clearing works?

    European Commodity Clearing (ECC) is a central clearing house which specialises in energy and commodity products  - but what actually is clearing?

    What happens, if the buyer or seller drops out of the transaction? Our short video explains clearing in a nutshell and gives a general overview of ECCs services.

     

      

    Notice:
    To activate the video, please click on the picture. Please note that after activation your data will be forwarded to YouTube.

    Anja Drosdziok

    Director Member Readiness

    +49 341 24680-261 memberreadiness@ecc.de

    Settlement

    The section “Operations” includes more detailed information on: