ECC accepts EUR as cash collateral to cover intraday margin calls. USD are accepted in exceptional cases.
Overnight margin calls take place in EUR only; the same applies to contributions to the Default Fund. Direct Clearing Participant could deposit GBP additionally.
Interest rates on cash collateral
ECC pays interest on EUR margin assets in the form of cash, contributions to the Default Fund in the form of cash and funds provided for the fulfilment of liable equity capital requirements in the form of cash provided by an Institution Clearing Member, subject to and as long as being accepted as guarantee fund by Deutsche Bundesbank in accordance with the Guideline of the European Central Bank of 5 December 2012 on a Trans-European Automated Real-time Gross settlement Express Transfer system (TARGET2) ECB/2012/27.
ECC will apply for EUR cash collateral the following interest rates:
|Interest period||Interest rate|
|08.02.2023 – 21.03.2023|| |
|22.03.2023 until further notice||2.8%|
Interest is calculated on a daily basis ACT/360 and will apply during an interest period for the respective end-of-day cash balances reduced/complemented by a service fee of 15 bps in accordance with the ECC Price List.
Minimum Cash Ratio
If the cash ratio of an Institution Clearing Member is below a pre-defined threshold value ECC may, on a non-discriminatory basis, with effect from 1 January 2023 charge all affected Institution Clearing Members an add-on to the service fee for margin assets in the form of securities or book-entry securities (Wertrechte).
The cash ratio is defined as the ratio of all margin assets in the form of cash booked to the internal collateral accounts of an Institution Clearing Member, or delivered as contribution to the Default Fund by or on behalf of such Institution Clearing Member, to the sum of the overall margin requirement and the overall contribution requirement to the Default Fund of such Institution Clearing Member.
The level for the threshold value is set at 50%.
ECC may amend the threshold value from time to time. Any amendments will be published accordingly.
The cash ratio will be calculated daily for each Institution Clearing Member. The add-on will subsequently be applied daily also and invoiced on a monthly basis.
Further details can be found in the ECC Price List.