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 in the course of settlement.

    Integrated Settlement (Straight-Through Processing)

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

    Risk Management

    ECC uses its margin system to manage counterparty risk. This margin system has several lines of defence which provide protection against the default of counterparties:

    • 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

    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 specialising in the settlement of deliveries. Its experience includes:

    • deliveries of power and natural gas within the transmission grid of currently 30 European transmission system operators from 17 countries,
    • managing deliveries of EU Emissions Allowances and Certified Emission Reductions 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.

    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 is the leading clearing house for energy and commodity products in Europe and beyond – 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: