The Direct Clearing Participant (DCP) Model:
Direct access to spot market settlement
The DCP model allows trading participants on selected spot markets to become a direct member of ECC enabling them to participate in clearing and settlement services of the clearing house. Clearing provides trading participants the highest possible degree of safety and guarantees payment and delivery of the transactions concluded on exchange.
The DCP membership option is intended to allow especially small and medium sized companies to participate without the need for a Clearing Member. Any trading by a DCP is pre-collateralised which restricts the exposures to available collateral.
Companies solely interested in participating in the German national Emissions Trading Scheme (nEHS) can apply for a simplified nEHS-DCP membership. More information can be found here.
The DCP Model at a glance
- APPLICABLE MARKETS:
The DCP model is only offered to selected spot markets. Information on markets eligible for the DCP model can be found here.
- COLLATERALISED TRADING LIMITS:
ECC is the direct counterparty to all transactions concluded by the DCP member. The trading exposure of a DCP member is managed through financial pre-trade limits in the respective trading system. In order to be granted a financial pre-trade limit, the DCP member needs to provide respective 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:
Payment for purchases/sales is performed via the ECC Settlement Bank ABN AMRO Bank and the bank of the member (Connected Bank). The member’s bank needs to have a connectivity agreement with ABN AMRO Bank. The Bank is connected to >300 other banks worldwide (see here).
- RESTRICTION FOR ADMISSION:
The DCP model is only available to companies domiciled in a country that is approved by ECC for DCP access. More information can be found here.