Overview

    As a Central Counterparty, ECC guarantees financial fulfilment and carries out cash clearing for all transactions concluded on ECC’s Partner Exchanges.

    ECC co-operates with international banks as Clearing Members, Settlement Banks, Multi-Currency Payment Banks and Correspondent Banks. For Euro settlement, the transfer is done via the robust and reliable TARGET2 infrastructure of ECB.

    ECC has been approved as a designated payment system according to Article 10 of the Settlement Finality Directive 98/26/EC. Payments in foreign currencies are settled with a selection of Correspondent Banks.

    ECC has a harmonised invoicing and fee settlement process across all of its products, markets and asset classes.

    Services for Third Parties

    ECC provides fee settlement for its Partner Exchanges. This means that ECC collects the fees on behalf of the exchanges from the participants via their Clearing or Settlement Bank. The invoices are issued by the Partner Exchanges themselves.

    Process

    All payments are effected at fixed payment times and according to a payment calendar depending on the respective currency:

    • Payments in EUR are processed at around 8 a.m. CET before market opening on TARGET2 operating days
    • Overnight payments in USD and GBP are processed at fixed times on all currency-specific business days
      • USD at around 8 a.m. CET
      • GBP at around 9 a.m. CET

    Importing into Clearing Systems

    All trades concluded on the spot markets of our Partner Exchanges are imported into ECC’s clearing system SMSS promptly after trading with the help of the existing ECC member ID (e.g. ABCEX).

    Exchanges

    Conclusion of trades on spot markets

    SMSS

    Financial settlement: net payment amount

    Reporting
    Acconting cut-off: 4.00 p.m. (CET)

    Trade and payment reports available

    SWIFT
    End of day

    Debiting/crediting of net payment amounts instructed

    Financial Settlement

    Financial settlement of EUR takes place on every ECC business day (Monday to Friday, except TARGET2 holidays). Financial settlement of foreign currencies (GBP, USD) takes place on every currency specific business day. The trades are netted out into one net payment amount per Clearing Member or Settlement Bank respectively. ECC will use Multi-Currency Payment Banks to manage all foreign currency related cash transactions. The Clearing Members can select a Correspondent Bank to keep cash accounts in the respective currencies.

    The accounting cut-off is at 4:00 p.m. (CET). All trades concluded until 4:00 p.m. on the current day are settled on the next ECC business day (Payment Groups EUR_1600 and GBP_1600). Trades concluded after 4:00 p.m. are settled on the ECC business day after tomorrow (T+2).

     

    Reporting

    The delivery and payment day are displayed in the ECC Reports for spot market transactions. As an alternative to this, the data can be accessed via the ECC Member Area.

    Direct Contact

    Financial Settlement & Invoicing

    +49 341 24680-444 clearing@ecc.de