Collateral Security

    Securities Collateral Deposit

    The Clearing Member opens a pledge account in one of ECCs securities collateral locations and allocates this to a specific collateral pool. All transfers to this pledge account are automatically credited in ECCs clearing system near-time to the linked collateral pool. If collateral is not acceptable, ECC will automatically release the collateral and return it to the clearing member.

    Securities Collateral Release

    Withdrawals are requested using the Security Collateral Transaction Entry window. Once the collateral is released, the securities are debited in near-time from the Clearing Member's collateral account. If a withdrawal request leads to under-collateralization in the member's account, the transfer of the requested securities is postponed until the under-collateralization is resolved. This can be achieved  by depositing other collateral or by reducing the risk position.
     

    Action House Account CM GOS SOS OSA ISA

    Instruct Release

    CM

    CM

    CM

    Currently securities are not accepted neither for ISA nor for OSA

    Release of collateral maximum till

    Margin Requirement

    Margin Requirement + Underfunded Margin
    Requirement from SOS, OSA & ISA

    0

    Shortfall covered by

    House

    GOS

    GOS

    Acceptance by

    CM

    CM

    CM

    Release to

    CM

    CM

    CM

    Bank Guarantees as Collaterals

    Bank Guarantee for Non-Clearing Member (NCM)

    To use bank guarantees as collateral,

    • please contact one of the following guarantors and use the template “Template Guarantee NCM EUR”* or “Template Guarantee NCM GBP”* respectively.
    • please contact your Clearing Member to give approval for the use of the bank guarantee by using the  “Form O08” published below.

     

    Bank Guarantee for DCP Clearing Member (DCP CM)

    To use bank guarantees as collateral,

    • please contact one of the following guarantors and use the template “Template Guarantee DCP CM EUR”* or “Template Guarantee DCP CM GBP”* respectively.

    More details on risk management for DCP CMs can be found here.

    * The NCM and the DCP CM will then have the possibility of either (i) contacting the guarantee giving bank directly or (ii) indirectly with a correspondence bank, e.g. to contact its principal bank, which then contacts one of the Institutes approved by ECC out of the following list. The guarantee giving bank remains an ECC accepted institute. ECC does not have any influence on fees incurred with banks involved.

    Guarantors

    The template has been developed with the feedback of the following guarantors, which fulfill ECC’s criteria:

    Commerzbank AG

    Commerzbank AG
    Mittelstandsbank
    Commerzbank Transaction Services
    60261 Frankfurt am Main, Germany

    Viktoria Rudoj
    Handlungsbevollmächtigte
    Sales Trade Finance

     

    +49 69 136 - 42570 viktoria.rudoj@commerzbank.com

    DZ BANK AG

    DZ BANK AG
    Deutsche Zentral-Genossenschaftsbank AG
    Frankfurt am Main Platz der Republik
    60325 Frankfurt am Main, Germany

    Brigitta Engelhard

    +49 69 7447 92134 brigitta.engelhard@dzbank.de

    Helaba

    Helaba
    Landesbank Hessen-Thüringen
    MAIN TOWER
    Neue Mainzer Strasse 52-58
    60311 Frankfurt am Main, Germany

    André Bening
    Vice President
    Structured Trade & Export Finance

    +49 69 9132 23 59 +49 69 9132 8 23 59 (Fax) andre.bening@helaba.de

    Landesbank Baden-Württemberg

    Landesbank Baden-Württemberg*
    Humboldtstraße 18
    04105 Leipzig
    Germany

    *Only for NCM and DCP CM based in Germany.

    Annett Brosig
    Energie/Infrastruktur

    +49 (0)3 41/2 20 - 3 85 24 +49 (0)7 11/1 27 - 6 63 85 24 (Fax) annett.brosig@lbbw.de

    Banks interested in becoming a guarantor for ECCs collateral management service should contact ECC directly via email clearing@ecc.de. ECC will then review and decide upon the acceptance of new guarantors based on ECCs risk assessment and the fulfilment of ECC’s minimum requirements.

    Consideration regarding EMIR:

    EMIR Article 41 requires that a CCP shall impose, call and collect margins to limit credit exposure resulting from the relevant positions. According to Article 46 such exposure must be covered with highly liquid collateral with minimal market and credit risk. Highly liquid collateral is defined in Annex I to Regulatory Technical Standard 153/2013. Spot Market Initial Margin Requirement is not designed to cover risk from existing positions but from potential credit exposures from potential transactions on spot markets. Therefore, the limitations of Annex I do not apply for spot market initial margin. Furthermore, as in the spot market approach of ECC, transactions are concluded between ECC and the NCM under a guarantee of the CM, the collateral posted by NCM’s to ECC is backed by this guarantee of the CM realizable on a same day basis.

    Downloads
    2022-02-21 Template Guarantee NCM EUR (German) Collaterals Guarantee Collateral pdf (156 KB)
    2022-02-21 Template Guarantee NCM GBP (German) Collaterals Guarantee Collateral pdf (155 KB)
    2021-09-06 Template Guarantee NCM EUR (English) Collaterals Guarantee Collateral pdf (161 KB)
    2021-09-06 Template Guarantee NCM GBP (English) Collaterals Guarantee Collateral pdf (160 KB)
    2021-09-06 Template Guarantee DCP CM EUR (English) Collaterals Guarantee Collateral pdf (155 KB)
    2021-09-06 Template Guarantee DCP CM EUR (German) Collaterals Guarantee Collateral pdf (147 KB)
    2021-09-06 Template Guarantee DCP CM GBP (English) Collaterals Guarantee Collateral pdf (155 KB)
    2021-09-06 Template Guarantee DCP CM GBP (German) Collaterals Guarantee Collateral pdf (147 KB)
    2020-02-17 Form O08 (NCM) (English) Collaterals Guarantee Collateral zip (80 KB)

    Cash Collateral

    ECC accepts EUR as collateral. Regular overnight Initial Margin Calls will be carried out in Euro only. Intraday Margin Calls can be furnished in Euro, USD (exceptional cases only) or securities.

    Typ2 Currency Intraday Cut-Off Time Cash Processing Eligible for
    Deposit EUR 17:00 CET Debit All Margin Requirements
    Release EUR 09:30 CET Credit All Margin Requirements

    Cash will be debited or credited by ECC to the cash accounts that Clearing Members have communicated to ECC as relevant cash settlement accounts. Interest is paid on cash that is deposited with ECC at 10 am CET with the collateral pool that holds the cash overnight.

    Deposit

    Cash collateral is automatically called overnight into the house collateral pool for house positions (if separate house collateral pool has been opened) and into the Standard Collateral Pool (GOS – General Omnibus Pool) for any other positions.  Cash from the Standard Collateral Pool (GOS – General Omnibus Pool) can be allocated to a specific pool (except the house pool) by instructing balance only booking. Such allocations can be made using the sample CSV file here until 11am CET on ECC business days.

    Release

    Releases of cash from the house collateral pool (if separate house collateral pool has been opened) or the Standard Collateral and the SOS Collateral Pool are made automatically overnight. Cash from the house pool can be released on request of the Clearing Member before the intraday cut-off time. Releases of cash from any other pool are requested as follows:

    Action House Pool Standard Pool SOS OSA ISA

    Instruction of Release

    CM CM CM CM CM
    Approval of Release n/a n/a n/a OSA Represen-tative ISA Client

    Release maximum till

    Margin Require- ment Margin Require- ment 0 0 0

    Shortfalls covered by

    House GOS GOS GOS GOS

    Release to

    CM
    TARGET2 or foreign currency Account

    CM
    TARGET2 or foreign currency Account

    CM TARGET2 or foreign currency Account

    CM TARGET2 or foreign currency Account

    CM TARGET2 or foreign currency Account

    Automatically Overnight Releases

    Yes Yes Yes No No

     

    Forms

    Cash Collateral can be managed in C7 GUI by the Clearing Member. In backup cases, Clearing Members can use the following forms to instruct ECC.

    Interest rates on cash collateral

    Please find the interest rates on EUR cash collateral on ECC Risk Management page. 

    here
    Downloads
    2021-12-09 O04 Collateral Deposit / Collateral Release Collaterals Cash Collateral zip (132 KB)
    2021-12-09 O05 Intraday Collateral Deposit / Collateral Release Collaterals Cash Collateral zip (152 KB)
    2019-11-07 Signature Schedule Collaterals Cash Collateral pdf (192 KB)

    Collateral Emissions

    European Union Allowances (EUA) as margin credits

    To apply for the usage of EUA as margin credit please use the ECC Form "O07a Application form Emission Rights as Margin Credit".

    A retransfer of EUAs from the ECC Collateral Registry Account may be requested by the ECC Member Area either to a registry account of the trading participant or to the ECC registry account to fulfil delivery obligations for spot and derivatives trading.

    In addition, it must be ensured that the cooperating Clearing Member agrees to release the EUAs by signing the form "O07b Release Emission Rights as Margin Credit".

    More details are available at the ECC Clearing Circular 3/2022.

    Direct Contact

    Risk Operations

    +49 341 24680-444 clearing@ecc.de