DCP Members
The DCP model – simply explained
ECC has introduced the Direct Clearing Participant, or DCP model, to enable small and medium-sized companies to trade on selected spot markets of ECC partner exchanges. Our short video explains the DCP model in a nutshell.
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| Publishing date | Title | File |
|---|---|---|
| 2024-06-26 | DCP Limit Slide Deck | pdf (537 KB) |
The Direct Clearing Participant (DCP) Model:
Direct Access to Spot Market Settlement
The DCP model enables trading participants on selected spot markets to become direct members of ECC, granting them access to clearing and settlement services provided by the clearing house. Clearing ensures the highest possible degree of safety for trading participants and guarantees payment and delivery of transactions executed on exchange.
The DCP membership option allows especially small and medium sized companies to participate without the need for a Clearing Member. All trading by a DCP is pre-collateralised, limiting the exposure to available collateral.
Companies interested solely in participating in the German national Emissions Trading Scheme (nEHS) can apply for a simplified nEHS-DCP membership.
Key Features of the DCP Model
- APPLICABLE MARKETS:
The DCP model is available only for selected spot markets. Information on markets eligible for the DCP model can be found here.
- COLLATERALISED TRADING LIMITS:
ECC acts as the direct counterparty for all transactions concluded by DCP members. The trading exposure of a DCP member is managed through financial pre-trade limits within the respective trading system. To obtain a financial pre-trade limit, the DCP member must provide collateral accepted by ECC. Unlike other ECC access models, there are no margin calls for DCP members.
No Margin Calls:
In contrast to other ECC access models, the DCP model does not rely on margin calculations. ECC therefore does not perform any kind of margin calls towards DCP members.
- PAYMENT PROCESS:
Payments for purchases and sales occur via the ECC Settlement Bank (ABN AMRO Bank) and the member's bank (Connected Bank). The member’s bank must have a connectivity agreement with ABN AMRO Bank, which is connected to over 300 other banks worldwide (see here).
- RESTRICTION FOR ADMISSION:
The DCP model is available only to companies domiciled in a country that is approved by ECC for DCP access. More information can be found here.