Admission as DCP member

    Admission by ECC constitutes a fundamental precondition for exchange trading for DCP Members. It ensures that settlement, delivery and hedging of the transactions are secured by the clearing house.

    From a legal point of view DCP members are Clearing Members that hold a DCP clearing license to clear spot market transactions. The legal relationship between the DCP member and ECC is defined by the Clearing Conditions.

    Companies solely interested in participating in the German national Emissions Trading Scheme (nEHS) can apply for a simplified nEHS-DCP membership.  More information can be found here.

    DCP Introduction Slide Deck

    A comprehensive overview on the DCP model and the admission process can be found here.

     

    Link to the presentation

    Admission Requirements

    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
    • Bank account at a Settlement Bank for facilitating DCP payments (see DCP Payment)
    • Approval as a Trading Participant for at least one ECC approved spot market where DCP Model is available
    • For Participants of power spot markets: the conclusion of a balance group agreement with the respective TSO
    • Equity of at least EUR 50,000. The equity is calculated incl. subscribed capital, capital reserves, retained income less any losses incurred in the course of the year and less intangible assets.

      Increases of the subscribed capital during a given year shall be proven by means of the submission of the registration message. A DCP member can increase the equity by means of bank guarantees or guarantees of a parent company accepted by ECC.
    • Contribution to the Default Fund (depending on the provided collateral)
    • Company must be based in a country approved by ECC for the DCP model

    Domestic Countries – DCP readiness approvals

    Domestic Country DCP readiness approval
    Belgium Received March 2017
    Denmark2 Received June 2020
    Finland Received December 2021
    France Received October 2016
    Germany Received August 2016
    Hungary Received June 2021
    Ireland Received June 2017
    Lithuania Received January 2024
    Netherlands Received September 2016
    Poland Received July 2022
    Slovenia Received January 2024
    Switzerland Received July 2017
    Sweden Received July 2021
    United Kingdom Received May 2017
    Others1 To be determined

    ECC is constantly expanding the list of DCP-eligible countries within the European Union respectively the European Economic Area.
    Acceptable legal forms:

    • public limited company (in Danish: aktieselskab)
    • privat limited company (in Danish: anpartsselskab)
    • partnership (in Danish: interessentskab)
    • limited partnership (in Danish: kommanditselskab)
    • an association with limited liability (in Danish: “forening med begrænset ansvar”)
    • company with limited liability (in Danish: “selskab med begrænset ansvar”)

    KYC Procedure

    A company applying as a DCP member at ECC has to pass the KYC (Know-Your-Customer) process at ECC. The company 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) 
    • Financial statements from the last fiscal year. If no financial statement is available, business plan of the business activity for the next 3 years
    • Organisational 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 of an acceptance of the company as DCP member, ECC also decides on the Cap Limit available for the client.

    Cap Limit

    The maximum total limit granted to a DCP member is limited by the Cap Limit. The Cap Limit is determined on the basis of the member’s overall risk profile. Even if a DCP member deposits more collateral than the Cap Limit, the maximum collateral considered for the trading limit calculation is the amount of the Cap Limit, not more. 

    ECC derives the respective Cap Limit on the basis of the applicant's financial strength and internally defined credit-risk-based criteria.

    The Cap limit is calculated as part of the KYC process and reassessed once a year for each member.

    Material changes of the member

    In case the DCP member 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 member:
      At the beginning of each membership stands the admission as DCP member. Therefore, a DCP-form needs to be handed in. Additionally a clearing agreement (CM02) between the DCP member and ECC has to be signed.
    • 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 submitted to ECC.
    • To receive access to ECC’s clearing and settlement systems the DCP member 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 a complete admission package including all required documents, ECC will commence the admission process. The documents will be examined for completeness as well as correctness.

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


    ECC Admission Forms

    More about

    ECC Member Area

    More about

    DCP Payments

    More about

    Extension of a DCP 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 member can only trade on spot markets which fulfil ECC’s requirements to the DCP model.

    Approved Markets

    The following markets have been approved by ECC for DCP clearing. ECC endeavours to continuously expand the list of DCP approved markets.

    Exchange Product Name
    BSP Slovenian Power Spot (IT/ST)

     

    EPEX SPOT

    Austrian Power Spot (IT|IT1|ST)
    Belgian Power Spot (IT| IT1|ST)
    Danish Power Spot (IT|ST)
    Dutch Power Spot (IT|IT1|ST)
    Finnish Power Spot  (IT|ST)
    French Power Spot (IT|ST)
    German Power Spot (IT|IT1|ST)
    Norwegian Power Spot (IT|ST)
    Polish Power Spot (IT|ST)
    Swedish Power Spot (IT|ST)
    Swiss Power Spot (IT|ST)
    UK Power Spot (IT|IT0|IT1|IT2|ST)
    European Guarantees of Origin
    French Capacity Guarantees

    EEX

    French Guarantees of Origin (primary auction)
    National Emission Trading System Certificates (nEHS) / nEZ
    HUPX Hungarian Power (IT/ST)

    SEMOpx

    Irish Power Spot (IT|IT1|IT2|IT3|ST)
    Northern Irish Power Spot (IT|IT1|IT2|IT3|ST)

    Anja Drosdziok

    Director Member Readiness

    +49 341 24680-261 memberreadiness@ecc.de

    Network of Partners

    ECC offers access to an international network of partner exchanges, clearing members and transmission system operators.

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    Clearing Conditions

    Detailed information on ECC clearing and settlement.

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    Price List

    Detailed information on fees and invoicing.

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