European Commodity Clearing (ECC)
European Commodity Clearing (ECC) is a central clearing house which specialises in energy and commodity products. ECC assumes the counterparty risk and guarantees the physical and financial settlement of transactions, providing security and cross-margining benefits for its customers. As part of EEX Group, ECC provides clearing services for EEX, EEX Asia, EPEX SPOT and PXE as well as for the partner exchanges HUPX, HUDEX, NOREXECO, SEEPEX and SEMOpx.
ECC is part of Deutsche Börse Group.
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.
Benefits of central clearing for the market
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
For more information go to Lines of Defence.
Settlement services include:
- Payments for Variation Margin
- Cash settlement
- Option premiums and deliveries
- Physical delivery/nomination
Financial settlement of transactions between ECC and its Clearing Members is mainly based on central bank funds. The payment system of the European central banks contributes considerably to ECC’s highly reliable settlement procedures.
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 30 European transmission system operators from 18 countries,
- Managing deliveries of EU Emission Allowances, EU Aviation Allowances, Certified Emission Reductions, French Capacity Guarantees and Guarantees of Origin at European registries.
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.