NEMO Settlement and Banking Information Session Settlement and Banking Sessio… · European...

16th February 2017

NEMO Settlement and Banking Information Session

1

2

Agenda

Timing Topic Speakers

10:30 – 10:35 Introduction Robert Mc Carthy

10:35 – 12:30 ECC Settlement & Clearing Overview Susann Just-Marx

12:30 – 13:30 Lunch & Networking All

13:30 – 13:45 Unicredit Banking Overview Tomas Trsek

13:45 – 14:00 Keler Banking Overview Sándor Szalai

14:00 – 14:15 Wrap up/Next Steps All

14:15 – 15:00 Questions and Answers All

European Commodity Clearing AG

NEMO Settlement & Banking

Information Session

16 February 2017

Agenda

1. Morning session

1) Membership Options and Registration Process at ECC

2) Risk Management: Limits, Margins, Collateral

3) Daily activities: Financial and Physical Settlement

4) ECC Systems and Reporting Functionalities

5) Q&A

2. Networking Lunch Break

3. Afternoon session

1) Presentation of Banking Organizations

2) Q&A

4

Introduction Overview EEX Group and ECC

Part

ner

Exchan

ges

Cle

aring

House

EEX operates transparent markets for energy and commodity products. At EEX, contracts on Power,

Emission Allowances, Coal as well as Freight and Agricultural Products are traded or registered for

clearing. Alongside EEX, EPEX SPOT, Powernext, Cleartrade Exchange (CLTX), PXE, Gaspoint Nordic

and CEGH are also part of EEX Group.

Clearing and settlement of trading transactions are provided by the integrated clearing house European

Commodity Clearing (ECC). ECC also provides clearing services for SEEPEX, HUPX and NOREXCO.

5

Clearing Member SEMOpx

(Business) Transaction

(Business) Takeover Nomination/Delivery

SEMO

Trading

Participant 1

2

Collection of securities

Payments

Guarantee function

3

4

Nomination/Delivery 4

Membership Options Non-Clearing Member Model

Non-

Clearing

Agreement

Non-

Clearing

Agreement

Irish Power Market (Spot Only at the moment):

Clearing Members act as guarantor and payment agent for all trades concluded on the

Spot Market. They collect margins and all payments from their clients (trading participants).

6

Settlement

Bank SEMOpx

(Business) Transaction

(Business) Takeover Nomination/Delivery

SEMO

Trading

Participant 1

2

Payments 3

4

Nomination/Delivery 4

Membership Options Direct Clearing Participant / Settlement Bank Model

Irish Power Market (Spot Only at the moment):

Settlement Banks act as payment agents for all trades on the Spot Markets, e.g. provide

accounts which can be used for all payments necessary for buying/selling power at the spot

market. All trades of the Trading Participant need to be prefunded.

Direct

Relationship

with ECC

3

Bilateral

Agreement Bilateral

Agreement

7

Membership Options Comparison of different Membership Models

Non-Clearing Member Direct Clearing Participant

Markets All markets – Spot &

Derivatives Spot only

Bank Clearing Member (CM) Settlement Bank (SB)

Guarantee function Yes, Clearing Member No

Limit Voluntary,

Set by Clearing Member

Mandatory,

Set by ECC based on collateral &

credit limit set by ECC

Prefunding

No collateralization towards

ECC but potentially towards

the CM

Collateralization of pre-trade limit in

advance with collateral accepted by

ECC

Collateral Collected by CM, dependent

on by CM accepted collateral

Deposited by DCP,

only ECC-accepted collateral

Default Fund

Contribution Clearing Member obligation DCP obligation

Margining Yes, IMSM and CESM No, neither IMSM nor CESM

8

Membership Options Requirements

9


Passing ECC’s KYC assessment

Balancing Agreement with SEMO

Approved as a Trading Participant at the Exchange

Agreement with Clearing Member and ECC Agreement with Settlement Bank

Defined by Clearing Member

Country of origin approved by ECC for

Direct Clearing Participants

Contribution to Clearing Fund depending on

trading limit

Deposit of Collateral

Minimum equity of 50k€

or support by guarantee of parent company

Membership Options Comparison of Membership Models

Fees are settled via a DCP‘s Settlement Bank or a NCM’s Clearing Member.

10


Exch

an

ge

Exchange Level Annual Fee & Variable Transaction Fee

to be determined

EC

C

Variable Fees

ECC Clearing Fees for spot market:

0.7 EUR-Cent/MWh for all transactions,

both Day-Ahead and Intraday

Annual Fee None but variable fees of at least

1,000 EUR

12,500€ for all spot markets

9,000€ / 6,000£ for single

market

(e.g. Irish Spot Market)

Expenses for cash respective negative interest rate on cash collateral

Limit Adjustment Fee depending on CM 100€ / 70£ per limit /collateral

adjustment

Ba

nk

Bank Fees Individual Bank fees depending on bank and model

Contact a Settlement Bank or Clearing Member

Submit admission forms to ECC

ECC reviews admission documents

Technical setup of trading and clearing systems

Admission as Direct Clearing Participant or

Non-Clearing Member

1

5

2

3

4

Registration Process ECC Admission Process

11

Deadline ECC documentation package:

7 Aug 2017 (to be ready for Market Trial starting Dec 2017)

Registration Process Clearing Members & Settlement Banks Network

February 2017

2

11 1

2

1

2

1 1

2

23 Clearing Member ABN AMRO Clearing Bank N.V.

Banca Akros SpA

Banca Popolare di Sondrio SCPA

Banco Santander, S.A.

Bayerische Landesbank

BNP Paribas Commodity Futures Ltd.

Citigroup Global Markets

ED&F Man Capital Markets Limited

Goldman Sachs International

INTL FCStone LTD

J.P. Morgan Securities plc.

KELER CCP Ltd.

Macquarie Bank International

Marex Financial Limited

Merrill Lynch International

Morgan Stanley & Co. International plc

Nordea Bank AB, Frankfurt Branch

Oesterreichische Kontrollbank AG

Raiffeisenbank a.s.

Renta 4 Banco

Societe Generale Newedge UK Limited

UBS AG

UniCredit Bank Czech Republic and

Slovakia, a.s.

1 Settlement Bank ABN Amro Bank N.V.

1

12

Registration Process Application Forms

Non-Clearing Member* Direct Clearing Participant

KYC

Sca

n

“KNOW YOUR CUSTOMER” QUESTIONNAIRE

Specific

Forms Orig

inal NCM01 ADMISSION AS NON-

CLEARING MEMBER

NCM02 NCM AGREEMENT

DCP 01 ADMISSION AS DCP- CLEARING

MEMBER

O09 LIMIT ADJUSTMENT FORM

O10 CASH COLLATERAL FORM

AGREEMENT WITH SETTLEMENT BANK

TP Forms

Sca

n

TP_SEMO_01a POSSIBILITY TO FULFILL TRADES PHYSICALLY

or

TP_SEMO_01b POSSIBILITY TO FULFILL TRADES PHYSICALLY WHILE

USING A THIRD PARTY

T07 VAT DETAILS

T10 SETUP/ MODIFICATION / DELETION OF USER-IDs – not mandatory Technical

forms

Supplementar

y forms

CERTIFICATE OF COMPANY REGISTER

PROOF OF SIGNATURES

ANNUAL REPORT

*reduced scope for existing NCMs 13

Deadline ECC documentation package:

7 Aug 2017 (for Market Trial starting Dec 2017)

14

Membership Options NCM Direct: Overview

NCM Direct is a variation of the existing NCM membership model offered by ECC in order to

make use of the risk management measures that are implemented in the context of DCPs.

It is to be constructed for the spot markets only.

The main features of the service are:

Pre-trade limit system that NCMD can only trade up to an allocated trading limit

that has to be fully collateralized in advance.

ECC will refrain from calling IMSM or CESM requirements.

ECC manages the collateral which is passed-through by the Clearing Member.

The Clearing Member still guarantees for all exposures of the NCM Direct

participants.

The NCM Direct model is in the

design phase at ECC; no firm go-live

date possible at this stage

Membership Options Comparison of Models


“Normal” NCM NCM Direct

Markets All markets – Spot &

Derivatives Spot only Spot only

Bank Clearing Member (CM) Clearing Member (CM) Settlement Bank (SB)

Guarantee

function of Bank Yes, Clearing Member Yes, Clearing Member No

Limit Voluntary, Set by Clearing Member

Mandatory, Set by ECC based on collateral &

credit limit set by Clearing Member

Mandatory, Set by ECC based on collateral & credit

limit set by ECC

Prefunding

No collateralization

towards ECC but

potentially towards the

CM

Collateralization of pre-trade

limit in advance with collateral

accepted by ECC

Collateralization of pre-trade

limit in advance with collateral

accepted by ECC

Collateral Collected by CM, dependent on by CM accepted

collateral

Collected by CM, but directly

forwarded to ECC, only ECC accepted

collateral

Deposited by DCP, only ECC-accepted collateral

Default Fund

Contribution

Clearing Member

obligation Clearing Member obligation DCP obligation

Margining Yes, IMSM and CESM No, neither IMSM nor CESM No, neither IMSM nor CESM

15

The NCM Direct model is in the

design phase at ECC; no firm go-live

date possible at this stage

Agenda

1. Morning session





5) Q&A




2) Q&A

16

Risk Management Comparison of different Membership Models


Markets All markets – Spot & Derivatives Spot only

Bank Clearing Member (CM) Settlement Bank (SB)

Guarantee function Yes, Clearing Member No

Limit Voluntary,


Mandatory,

Set by ECC based on collateral & credit

limit set by ECC

Prefunding No collateralization towards ECC

but potentially towards the CM

Collateralization of pre-trade limit in

advance with collateral accepted by ECC

Realistic Price Range Voluntary,


Voluntary,

dependent on credit evaluation by ECC;

at least 99%

Collateral Collected by CM, dependent on

by CM accepted collateral

Deposited by DCP,

only ECC-accepted collateral

Default Fund Contribution Clearing Member obligation DCP obligation

Margining Yes, IMSM and CESM No, neither IMSM nor CESM

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Risk Management – Non-Clearing Member Margin Fundamentals: Spot Market

Current Exposure + Potential Future Exposure

Spot Market

Derivatives

Market Variation Margin Initial Margin (SPAN)

Initial Margin Spot Market

(IMSM)

Current Exposure Margin

(CESM)

Risk

Exposure of the existing

transactions need to be paid by

the counterparties.

Is the value of outstanding

payments at the time of a

potential counterparty default.

Expected value of spot

transactions for the time

between last payment and

default of a counterparty.

Acts as a buffer for the time of

trading where no payments

can be made (during nights

and weekends).

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Risk Management – Non-Clearing Member Spot Market: Current Exposure Margin (CESM)

16:00 8:00

Exposure

accumulates

16:00 18:00 11:45 18:00 11:45

Current Exposure

Spot Market accumulates

Pay

men

t

fixed

8:00

Pay

men

t

book

ed

Pay

men

t

ful

fille

d

Pay

men

t

fixed

Pay

men

t

book

ed

Pay

men

t

fulfi

lled

EUREX System

closed

IMS

M

Start DA

auction

Current Exposure Margin (CESM):

On spot power and natural gas markets trading takes place 24/7

ECC measures intraday credit exposure on spot markets near to real time

It is the net value (payment amount) of all concluded transactions on the spot markets

during the day that have not been settled

The margin will be released as soon as the corresponding payments have been

instructed at the end of the business day (18:00 CET)

Only exposure from transactions concluded after the ECC booking cut (16:00 CET) will

be maintained in the CESM margin over-night

19

Risk Management – Non-Clearing Member Spot Market: Initial Margin Spot Market (IMSM)

Initial Margin Spot Market (IMSM):

In order to cover exposures that might arise from trading activities during TARGET2

closure times (e.g. at night or on weekends) ECC has developed a bespoke model to

calculate a margin as a buffer which is designed to cover exposure from potential spot

transactions in the future.

It also serves as a buffer to reduce intraday margin calls.

IMSM model „predicts“ trading behavior of all members based on the trading participant‘s

exposure from spot trading during a look-back period of one year. Furthermore the

maximum exposure from the last 20 days is considered to account for sudden changes in

the trading behavior.

The exposure is only measured for ECC trading days (TARGET2 days) where Mondays

and Fridays exposures includes weekend trades:

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Risk Management – Non-Clearing Member IMSM Example Calculation

Example setup:

A trading participant buys frequently 1.000 MWh for 40€ per MWh with no weekend trading. This leads to a daily

financial exposure 40.000 EUR per ECC business day

Increased exposure of 80.000 EUR due to higher prices on 22th of January 2014

Higher exposure due to trading behaviour: High buy volume in day ahead auction which was sold shortly afterwards

(but after calculation cut off) for the 14th of February 2014

Increased exposure due to trading on weekends for the 24th of February 2014

-100.00 €

-50.00 €

0.00 €

50.00 €

100.00 €

150.00 €

200.00 €

250.00 €

300.00 €

in t

ho

usa

nd

Exposure T0 Exposure IMSM

For customized sample calculation use the IMSM sample calculator which can be downloaded at:

https://www.ecc.de/ecc-en/risk-management/margining 21

https://www.ecc.de/ecc-en/risk-management/margining





Risk Management – Non-Clearing Member Default Fund Contribution

ECCs default fund is intended to cover losses that exceed the margin collateral and

individual default fund contribution in the case of a Member’s default.

According to the default waterfall ECC contributes its dedicated own resources before the

contributions of non-defaulting Members are used.

1. ) Individual Margins, excess collateral or other amounts due to the defaulting Clearing Member

2. ) Default fund contribution of defaulting Clearing Member

3.) ECC dedicated own resources

4.) Default fund contribution of non-defaulting Clearing Members

5.) ECC other financial resources

22

Risk Management – Direct Clearing Participant DCP Member

On the spot markets trading takes place 24/7 where financial settlement takes

place on ECC business days only.

DCP Members have to consider their daily exposure as the pre-trade limits

currently limit the exposure for a trading day but ECC needs to consider trading

days that are no ECC business days (e.g. weekends). This means that the

collateral required to cover a certain daily exposure will usually be higher to

cover such days.

As a general rule:

• For day ahead auction 3 times daily exposure is required to cover weekends.

• For IDM 2 times daily exposure is required to cover night trading and

weekends.

Special holiday constellations (e.g. easter, christmas) have to be considered

separately.

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Risk Management – Direct Clearing Participant DCP Member

When setting limits it needs to be considered that exposure of orders is

calculated using order price. In case of umlimited orders this means those are

evaluated using the technical price boundary (-500 €/MWh + 3,000 €/MWh)

creating high exposures.

Buy and Sell orders are not netted when calculating the exposure. Expected

proceeds from concluded trades can be used to offset exposures from other

trades.

24

Risk Management – Direct Clearing Participant Example DCP Member – Seller only

Sell quantity of 130MW per day at minimum 0€ per MWh (no negative prices)

Expected price of €40/MWh

• Collateral for Pre Trade Limit = 0 EUR

• Default Fund = 4% * Collateral = 0 EUR

• Total funds necessary: 0 EUR

As both Auction and Intraday trading are done in different systems (ETS for

Auction and M7 for intraday) technically two limits are required however the

same methodology applies.

Please note: All intraday auctions are done in ETS, therefore the Auction Limit

include the main auction as well as the intraday auctions.

25

Risk Management – Direct Clearing Participant Example DCP Member – Buyer and Seller

Sell quantity of 130MW (positive prices only) per day and Option to buy back up

to 130MW per day in IDM.

Expected price 40€/MWh

ECC exposure from sell quantity is 0 (see example before). ECC exposure from

buy quantity is 40€/MWh x 24h x 130 MW = 124,800€ per day. Due to business

hours of ECC the trades on a weekend are financially settled on Tuesday,

therefore exposure cumulates over maximum 2 days.

• Collateral for pre Trade Limit = 124,800 x 2 = 249,600 EUR

• Default Fund = 4% * Collateral = 9984 EUR

• Total funds necessary: 259,584 EUR

26

Risk Management – Direct Clearing Participant Example DCP Member – Buyer and Seller

Example like before but Option to buy back 0 to 50MW in either DAM or IDM

market. (positive prices only)

ECC exposure from sell quantity is 0 (see example before).

The daily exposure for the IDM or auction is 50MW x 24h x 40 €/MWh = 48,000 €

The collateral required by ECC to cover the daily exposure is the maximum of:

• For the auction (multiplier of 3 for weekends) 48,000 € x 3 = 144,000 EUR

• For the IDM (multiplier of 4 for weekends) = 48,000€ x 2 = 96,000€

• Default Fund = 4% * Collateral = 9,600 €

• Total funds necessary: 249,600 €

27

Risk Management – Direct Clearing Participant Default Fund Contribution

ECCs default fund is intended to cover losses that exceed the margin collateral and

individual default fund contribution in the case of a Member’s default.

According to the default waterfall ECC contributes its dedicated own resources before the

contributions of non-defaulting Members are used.

For DCP the default fund contribution is set as a % of the limit

1. ) Individual Margins, excess collateral or other amounts due to the defaulting Member

2. ) Default fund contribution of defaulting Member

3.) ECC dedicated own resources

4.) Default fund contribution of non-defaulting Members

5.) ECC other financial resources

28

ECC

Risk Management Collateral Management

For NCM the accepted collateral is determined by his Clearing Member. For DCP Member

only EUR cash and bank guarantees are available to cover the pre trade limit.

Non-Clearing Member

Clearing Member

ECC Collateral Management

via ECC Member Area

EUR/GBP Cash Bank Guarantees

DCP Member

29

Agenda

1. Morning session





5) Q&A




2) Q&A

30

Financial & Physical Settlement Financial Settlement (1/2)

31

ECC established a daily booking cut at 16:00:00 CET. All

trades concluded before the booking cut are financially

settled on the following TARGET2 operating day, all other

trades are settled one day later.

The commodity amounts of all trades are netted to one net

payment amount per Clearing Member and are reported in

daily Payment Reports available as a summary or a detailed

report.

Payments in EUR are processed on TARGET2 operating

days at around 8 a.m. CET before market opening via the

EUREX infrastructure in the CM/NCM model or through the

settlement bank account for DCPs.

Payments in USD and GBP are processed overnight at fixed

times on all currency-specific business days according to

Clearstream Banking Luxembourg payment cycles.

Exchanges

Conclusion of trades on spot

markets

SMSS

Financial Settlement:

Net payment amount

Reporting

Trade and Payment Reports

available

EUREX

Debit/Credit of net payment

amount via TARGET2 instructed

Accounting cut-off 4:00 p.m. (CET)

End of day

Financial & Physical Settlement Financial Settlement (2/2)

32

The ECC payment report contains as summary version the net credit or debit amount:

The detailed version of the payment report shows the settlement amounts per trade:

Financial & Physical Settlement Scheduling of Power and Gas

33

Schedule Schedule

Balancing100

Feed-in Extraction Feed-in Extraction Feed-in Extraction

ECC 100

ECC 100

ECC 10

0

ECC 100

Balancing 100

... ... ... ... ... ...

Grid service with Balance regulation/ Balancing energy

Seller ECC Lux Buyer

Transmission System Operator

Seller

Buyer

European Commodity Clearing Luxembourg S.à.r.l.

For physical fulfilled power contracts ECC Luxembourg has concluded balancing groups with every transmission system

operator for power (TSO such as SEMO). As soon as contracts enter the delivery phase ECC carries out the nomination of

deliveries on a binding basis. The Nomination effects the exchange participants balancing group accounts.

If imbalances are arising at the balancing group account due to the nomination of schedules it will be eliminated by SEMO or

MAC by using balancing energy. Any costs related to the usage of balancing energy have to be paid by the owner of the

balancing group account.

Due to the counterparty chain clearing members are not involved in the delivery.

Financial & Physical Settlement Invoicing 1|4

34

ECC creates monthly invoices at the latest until the

5th business day of the following month.

ECC issues invoices for Clearing Fees and

commodity amounts.

The invoices are sent to the customers by post

and/or email.

An invoice copy (Invoice Report Summary – IRS)

and a detailed report (Invoice Report Detail – IRD)

are available via e-mail and/or ftp server and can be

subscribed to in the ECC Member Area.

Fees are debited on the 10th business day of the

following month via the participant's clearing or

settlement bank and are reported via ECC’s

standard payment reports.

http://www.ecc.de/en/member-area






35

Trading participants will receive the invoices concerned in the form of the Invoice

Report Summary (IRS) electronically via e-mail and/or can retrieve them via the

established FTP server infrastructure.

In addition to the IRS customers will receive the Invoice Report Detail (IRD) further

detailing the invoiced deliveries and services in an electronic format (PDF)

To be able to receive the invoice documents a respective report subscription via the

ECC Member Area is necessary. This will be done initially by ECC in the frame of the

on-boarding process (application form NCM01). An additional individual subscription

can be made afterwards as well.


36

ECC Lux invoices

(deliveries)

ECC AG invoices

(trading)

Contains all purchased and sold

commodities of products with physical

deliveries:

spot transactions

intraday transactions

future expiries.

Contains all derivatives market

products or financially fulfilled

contracts.

Invoice is based on the delivery day of

the concerned transactions (= delivery

month).

Invoice is based on the timestamp of

the concluded transactions (= trading

month).


37

Financial & Physical Settlement Fee Settlement

38

ECC provides fee settlement

services for its Partner Exchanges.

That means ECC collects the

exchange fees on behalf via the

participant’s clearing or settlement

bank.

The invoices are issued by the

Partner Exchanges themselves.

The fee settlement service is

currently used by EEX, EPEX

SPOT, Powernext, POWER

EXCHANGE CENTRAL EUROPE,

Gaspoint Nordic and NOREXECO.

Agenda

1. Morning session





5) Q&A




2) Q&A

39

ECC Systems and Reporting Functionalities

ECC Spot Market Settlement System (SMSS)

Settlement of Spot Market Transactions

online access to the SMSS via the “ECC Member Area”

Transactions can be viewed and reports can be subscribed to in the ECC

Member Area.

Reports:

Pdf, XML

FTP Server and/or email

Spot Trade Reports, Payment Report, Delivery Reports, Invoice

Reports (monthly), Scope: Detail or Summary Reports

Trading System not subject of this presentation

Report functionalities planned such as continuous export of trade info in

Excel file, API interface (details to be clarified with exchange)

40

ECC Systems and Reporting Functionalities Member Interfaces (1/3)

1) ECC Member Area

The ECC Member Area is the gateway to the settlement services of European Commodity

Clearing AG (ECC). With the help of the Member Area ECC provides a 24/7 online access to

the ECC settlement systems for trading participants. ECC offers a client self service area via

its Spot Market Settlement System (SMSS) Member Area.The following functions are available

in the ECC Member Area.

• Transactions – Overview of Spot and Derivatives Market transactions

• Accounts – Access to internal delivery accounts for emission allowances

• Limit Maintenance – Management of trading limits

Documentation

Documentation – as changed from time to time – for those reports can be obtained here:

https://www.ecc.de/ecc-en/member-section/user-guides-manuals

41


2) ECC Reports

ECC offers its clients a bundle of trade, payment and invoice related reports which can be

subscribed in the ECC SMSS Member Area. Various reports can be subscribed to in the XML

and PDF format (spot trades / payments / invoices / margin).

Subscribed reports are retrievable via a download link or fetching via the ECC FTP Server

Also historical transactions can be exported via the Member Area of the ECC website. The

SMSS XML Report Specification which is available at the link below contains the description of

the XML reports generated by the ECC SMSS.

Documentation

Documentation – as changed from time to time – for those reports can be obtained here:

https://www.ecc.de/ecc-en/member-section/smss-report-specifications

42


3) ECC FTP Server

ECC offers a FTP server to exchange reports subscribed via its SMSS Member Area and ECC

Product Specification Files. Access to the FTP server is provided on user level and is

administrated by ECC.

The user name and password are identical with the access data for the ECC Member Area.

These can be applied for from ECC using the form T10 for private data as well as the T10p for

public data (ECCPUBLIC) which can be downloaded from www.ecc.de.

Documentation

Documentation – as changed from time to time – for connecting to the FTP server can be

obtained here: https://www.ecc.de/ecc-en/member-section/user-guides-manual

43

http://www.ecc.de/

ECC Systems and Reporting Functionalities Login

44

1

2

1. Enter user credentials

2. Click on login

ECC Systems and Reporting Functionalities Overview of functionality of SMSS Member Area

1. Subscribe to reports or obtain directly reports (online screen)

2. rocedures.

3. Get an overview of existing limits, set limits.

4. User master data, change of passwords.

5. Logout

45

1

2

3

4 5

ECC Systems and Reporting Functionalities Subscription to reports

46

1 2

3 4

5

6

ECC Systems and Reporting Functionalities Details to subscribe a report

47

1

2

3

4

5

Name of Report. Details are set out in ECC Report

Specification. Not all reports are obtainable for SEMOpx

users

Summary or Detailed report.

Format of Report

Frequency of Report

Communication Channel

ECC Systems and Reporting Functionalities Online transaction view

48

1

2

3

1. Adopt Filter

2. Click on Search

3. Export as XML or

PDF

ECC Systems and Reporting Functionalities Result of report

49

ECC Systems and Reporting Functionalities Limit Maintenance

50

1

2

3

4

1. Activate pre-defined

filters or

2. Adopt Filters

3. Click on Search

4. View and export

list of limits

ECC Systems and Reporting Functionalities Set a limit

51

1

2

3

1. Enter limit definition

2. Enter Limit Value,

adopt begin and end

dates

3. Click on confirm

Please note, that any

change needs to

be validated via a

4 eyes principle

before the limit is

send to the

exchange.

ECC Systems and Reporting Functionalities Password Administration

52

1

2

1. Enter old and new

password

2. Click on confirm

ECC Systems and Reporting Functionalities User Administration

53

1

2

1. Enter (own) user

master data

2. Click on confirm

Contacts

Susann Just-Marx

Key Account Manager Clearing

T: +49 341 2156-394

[email protected]

Please contact us in case of further questions!

www.ecc.de

Stephan Claus

Risk Controlling & Bank Compliance

T: +49 341 24680-535

[email protected]

Anke Voigt

Member Readiness

T: +49 341 24680-155

[email protected]

54

ECC Systems and Reporting Functionalities Technical Requirements

ECC Member Area

For Type 2 communications, participants can

connect to the Members Area on the ECC website

to access Settlement Reports, to see details of

transactions and to perform administration

functions.

Access to the members area website is controlled

via a username and password login. Login details

are provided as part of the registration process.

To access the ECC Member Area standard

browsers like Mozilla, Internet Explorer compliant

with http and https protocol will work.

No specific 3rd party components are needed.

Password policy foresees at least 3 of the

following conditions: 1 uppercase char, 1

lowercase char, 1 digit char, 1 special char, a

password reset is required after 90 days.

Multiple user access with the same credentials is

possible.

ECC FTP Server

The Type 3 interface for the settlement function is

based on file retrieval via FTP from the ECC

member’s FTP file server.

The same username and password setup for Type

2 access is also used for access to the FTP server.

Two additional security options are available to

participants to secure the file transfer process from

the FTP server: FTPES and SFTP

Any FTP client that meets that supports the

connection type described above will suffice,

winscp (Windows) or scp (Unix).

No specific 3rd party components are needed.

Password policy foresees at least 3 of the following

conditions: 1 uppercase char, 1 lowercase char, 1

digit char, 1 special char, a password reset is

required after 90 days.

Multiple user access with the same credentials is

possible.

55

ECC Systems and Reporting Functionalities FTP Public

Screenshot FTP Public

56

ECC Systems and Reporting Functionalities FTP Trade Report

Screenshot FTP (Access to Trade Report)

57

ECC Systems and Reporting Functionalities Spot Report Details

Spot Report Details (XML)

58

ECC Systems and Reporting Functionalities Spot Report Details

Spot Report Details (PDF)

59

Appendices

60

Lunch

Commodity clearing services

UniCredit Group

NEMO Banking & Settlement Session

Dublin, February 16, 2017

UniCredit Group profile

Banking operations in 16 European countries

Representative offices in 25 world locations

Market leader in CEE region

62

UniCredit is a leading European commercial bank present in 41 markets, managing more than EUR 225 billion of assets.

Moody's: Baa1

Standard & Poor's: BBB-

UniCredit Bank Czech Republic and Slovakia, a.s.

100% shares owned by UniCredit S.p.A.

Market leader in Czech

Republic and Slovakia

3,300 employees

170 branches

More than 550,000

clients

Total assets of EUR

20.74 billion

63

* UniCredit Bank provides access to the following exchanges: EEX, apx, Belpex, EPEXSPOT, NOREXECO, PXE, hupx, powernext,

SEEPEX

UniCredit Bank Czech Republic and Slovakia, a.s. is the

commodity clearing and settlement provider in

UniCredit Group.

PROVEN TRACK

RECORD Offering commodity clearing services since

2007

WIDE COVERAGE OF EUROPEAN

MARKETS

General clearing member with European Commodity Clearing (ECC) providing access to 9 partner exchanges*

YOUR PARTNER

WITHIN UNICREDIT

GROUP

UniCredit Bank Czech Republic and Slovakia, a.s. is the owner of clearing license within UniCredit Group

RELIABLE PARTNER

Number of clients switching to another clearing

bank close to zero since 2007

ALL PRODUCTS

CLEARED

We clear all products on power, gas and CO2 traded on exchanges we cover

Clearing models overview

Each non clearing member has to operate under one of the options below

NCM (NON CLEARING MEMBER) MODEL DCP (DIRECT CLEARING

PARTICIPANT)

Non clearing members are trading participants without a clearing license

UniCredit Bank acts as a payment agent and guarantor for non clearing members at the spot market

Non clearing members are also provided:

Advisory during the whole business relationship

Limit management

Collateral management

Daily reporting

Direct access to ECC.

DCP participant settles via an ECC

approved settlement bank

Not supported by UniCredit

Clearing cooperation setup is fast and efficient

65

BUSINESS NEGOTIATION

KYC AND RISK MANAGEMENT

DOCUMENTATION SIGN OFF

GO LIVE • Account

opening

• Posting of initial

margin

Onboarding process takes six weeks on average

Agreement on markets, products, clearing model, collateral and pricing

Pricing is based on traded volumes and is transparent and easy to understand

Evaluation of business model, trading strategy and past performance

Identification of company officials and ownership structure disclosure

NCM02 agreement between the trading participant, ECC and UniCredit

Clearing agreement between trading participant and UniCredit

Verification of delivered

documentation and sign off process is

supported by UniCredit Dublin

office

Collateral types & Spot margin Collateral accepted by UniCredit

Cash is automatically debited or credited to trading participant's account.

EUAs can be accepted as collateral. EUA collateral is limited to maximum of 20% of margin requirement.

Highly liquid ECB (European Central Bank) eligible government bonds can be accepted.

Guarantees from issuers approved by ECC can be accepted.

CASH

EMMISION CERTIFICATES

SECURITIES

BANK GUARANTEES

Spot margin Initial Margin Spot Market (IMSM): Buffer to cover potential spot transaction in

the future Calculation is based on historical data Minimum EUR 30 ths for new trading

participants decreasing to EUR 10 ths after first 30 days.

Current Exposure Spot Market (CESM):

Net value of unsettled transactions during

the day

Spot margin requirement = IMSM + CESM

Cash Management

CURRENT

ACCOUNT

IN YOUR

LOCAL

BANK

CURRENT

ACCOUNT

IN

UNICREDIT

CZSK

CLEARING

ACCOUNT

IN

UNICREDIT

CZSK

TARGET 2

ACCOUNT

NCM side UniCredit Bank Czech Republic and Slovakia, a.s. ECC side

NCM has full rights to manage his current account

Is used to transfer cash to and from UniCredit Bank

Clearing account is managed by UniCredit on NCM's orders

Can be debited by during the daily settlement

NCM has viewing rights only

Collateral posted to ECC is deposited in the Central Bank TARGET2 account

SEPA PAYMENT (D+0)

URGENT SEPA PAYMENT (1-2 hours)

Daily report provided by UniCredit Bank

Contains deal executed by the client within the relevant business day, client's position overview based on contract types, commodities and exchanges

Gains or losses resulting from daily mark-to-market including, if relevant, unrealized gains or losses

The total margin requirement for the client, it's components and the breakdown into individual margin classes

Payments for delivery of relevant futures. Continuing delivery decreases the size of the open position on a particular contract.

Reporting of completed spot transactions and payments in a given business day. The transaction report need not be one-to-one to the payment report (this is relevant for transactions on weekends, public holidays etc.)

Report contains details of charged fees.

Executed deals & open derivatives positions

M2M

Margin requirement

Delivery report

Fee report

Spot reports

Contacts

Tomáš Trsek

Vice president

Energy Clearing Sales and Product

Tel. +420 955 961 379

Mobile +420 724 393 389

[email protected]

UniCredit Bank Czech Republic and Slovakia, a.s.

Želetavská 1525/1

Praha 4 - Michle

140 00

Czech Republic

Kryštof Wolf

Product specialist

Corporate Commercial Strategy - Product Innovation

Tel. +420 955 961 208

Mobile +420 727 982 978

[email protected]

Introduction of KELER Group and overview of its

energy market services

February 16, 2017

Dublin

71

KELER Group

overview

72

KELER Group in a nutshell Ownership structure and key financials

Solid ownership structure and capitalisation support KELER Group

to provide high quality services to Clients

Banks, brokerage companies

53.33%

46.67%

99.72% 0.13%

75.75% 24.25%

0.15%

BUDAPEST STOCK EXCHANGE

CLEARING HOUSE,

CENTRAL COUNTERPARTY

CENTRAL SECURITIES DEPOSITARY

95908882

6567

2014 2015 2011 2010

CAGR: 7%

2013 2012

Consolidated equity (EUR mn)

73

EMIR reporting service launched

Cash clearing for energy market clients

T2S accession, CSDR licence - planned

Mutual fund trade infrastructure, WARP launched

REMIT reporting service launched

EMIR license obtained

Clearing services for CEEGEX

Clearing of ECC markets starts

Extension of energy settlement for HUPX PhF

Service launch towards HUPX1 and NFKP2

Start of operation; Take-over of certain roles from Keler

KELER CCP established

Special banking license obtained

1st cross-border transaction settled

KELER established

Group history and milestones

2004

2009

2011

2012

2013

2017

2014

1993

2008

1995

2010

1 Hungarian Power Exchange; 2 Natural Gas Balancing Platform 3 Romanian Commodity Exchange 4 SEE Power Exchange - Serbia

BRM3 clearing project start

Collaboration with SEEPEX4 2015

2016

74

KELER Group energy market

post trade services

KELER GROUP

OFFERS AN ALL INCLUSIVE

POST-TRADE SERVICE PACKAGE

CLEARING OF TRADES

ON ALL ECC MARKETS

SETTLEMENT OF

ALL TRANSACTIONS

GUARANTEE

UNDERTAKING

RISK MANAGEMENT

75

Footprint in the European clearing business

ECC MARKETS: KELER as GCM GAS MARKETS: KELER as CCP MARKETS COVERED

OTHER MARKETS: KELER as CCP

• Spot, derivatives, commodities (BSE)

• Listed international securities (BETa Market)

• Secondary gov. securities market (MTS Hungary)

*Cross-border clearing service to be launched in H2 2017

*

Belgium

76

Pan-European coverage Services for small to large players on all ECC markets

*Source: ECC

Above 100 clients in energy clearing from 21 European

countries – close to 50% from Western Europe

Pan-European service

provider

KELER CCP currently ranks 2nd within GCMs listed under ECC

by number of serviced NCMs*

Active GCM with continuously

growing clientele

KELER CCP is one of the 2 GCMs that cover all 18 ECC

markets Full market coverage

Based on the share capital NCMs of KELER CCP represent a

universe from smaller to larger players – 53% below EUR 3

mn

Understanding of small, mid-

sized as well as large players

77

Market References with highlight on the

British and Irish markets

78

KELER CCP Strict supervision and highest compliance

KELER CCP

IS SUPERVISED

BY A PROFESSIONAL

INTERNATIONAL COLLEGE

WHICH CONSISTS OF

FIVE DELEGATED

MEMBERS

HIGHEST COMPLIANCE

WITH

Central Bank of Hungary

UK Financial

Conduct Authority Central Bank

of Ireland

European Securities

and Markets Authority

National Bank

of Belgium

Domestic and EU legislatory

requirements (EMIR licence)

ECC membership

standards

79

Introduction of energy market services

Access to ECC markets Clearing model overview

GENERAL CLEARING

MEMBERS (GCMs)

that are directly

connected to ECC

NON-CLEARING

MEMBERS (NCMs)

that are directly

connected to the GCMs

Operates in a

MULTI-LAYER

SCHEME

with

ECC Connects

EUROPEAN COMMODITY MARKETS

through integrated and automated

clearing processes

1.

2.

KELER CCP IS AMONG THE TWO GCMs COVERING ALL EXCHANGES

WITH CLEARING SERVICES

GCMs 19

NCMs 455

Exchanges 7

81

Contractual scheme of clearing & settlement

in ECC markets

ECC MARKETS

NON-CLEARING MEMBERS

YOUR

COMPANY

GENERAL CLEARING

MEMBERS

TRADING

AGREEMENT

TRILATERAL

AGREEMENT

CLEARING

AGREEMENT

*

* Planned launch in May, 2018

http://www.google.hu/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjIgeiC7dXQAhXMBBoKHY3xC_4QjRwIBw&url=http://www.istockphoto.com/gb/vector/contract-icon-gm518473506-90060885&psig=AFQjCNHVf5bBZjptnPMHlHoNgRYy4K6LVA&ust=1480779811034024



82

Set-up

TRADING PLATFORM CENTRAL COUNTERPARTY

GENERAL CLEARING

MEMBER

• Calculation of positions

• Collection of payments

• Assisting the trader’s inquiries

NON-CLEARING MEMBER

1. SUBMISSION

OF ORDERS

2. TRADES FORWARDED TO ECC

3. TRADING DATA IS

FORWARDED TO

RESPECTIVE

CLEARING MEMBERS

4. DAILY PAYMENT AND MARGIN

OBLIGATIONS SENT VIA CLEARING REPORTS

5. SETTLEMENT OF MARGIN

AND PAYMENT REQUIREMENTS

6. ECC COLLECTS

SETTLED AMOUNTS

FROM GCM ON DAY

T+1

YOUR

COMPANY

83

Why do you need a Clearing Bank?

• Client access through KID / e-KID - KELER

Interface Device to cash and securities

accounts

• Online access to clearing reports

• Calculation of daily margin and payment

positions

• Position management

• Easy-to-follow clearing reports

• Risk management

CLEARING

E-INTERFACE

• Account management

• Daily settlement of payment and margin

positions

• Multi-currency transactions

• Treasury services

SETTLEMENT

eKID

ALL POST-TRADE SERVICES ARE DONE AT ONE PLACE!

84

KELER Treasury Services

• Online orders via eKID

(electronic KELER Interface Device)

• Direct relationship, communiaction

and information via:

phone / e-mail

Trading with a wide range of instruments

• Interest rates

• Foreign currencies (FX)

• Government securities

Experienced staff

• Senior treasury experts

with 10-20 years’ experience

ACTIVE ROLE IN THE CAPITAL MARKET,

FOREIGN CURRENCY (FX) AND INTEREST RATE MARKET

• No extra commission

• No transaction fee

• Special FX rates

• For conversions exceeding

HUF 20,000,000 (~EUR 65,000)

SPECIAL HIGHLIGHT ON FX ACTIVITY –

SPECIAL RATES AND TAILORED CONDITIONS

PERSONAL

RELATIONSHIP

85

Comparison of NCM models General overview

TRADING COMPANIES WITH HIGHER

VOLUMES AND LARGER LIQUIDITY

SPOT and FUTURES markets SPOT markets ONLY

SMALLER TRADERS, GENERATORS,

SUPPLIERS

STANDARD

NON-CLEARING MEMBER MODEL

DIRECT


MARKETS

COVERED

No pre-collateralization,

margin requirement based on

historical trades, prescribed by ECC

Trading limits can be negotiated,

spreads applied for limits

Pre-funded trading,

no separate collaterals

Trading limit is set by ECC;

collaterals = trading limit

REQUIREMENTS

& LIMITS

TARGET

CLIENTELE

BY SIZE

CURRENTLY RUNNING AND

OFFERED TO NCMS

PLANNED LAUNCH BY H2 2017

DETAILS TO BE DETERMINED

Enables taking larger positions Liquidity is easier to handle

86

DAILY PAYMENT AND MARGIN

SETTLEMENT

ONLY PAYMENT OBLIGATION TO BE PAID

ON A DAILY BASIS WHILE MARGIN IS FIXED

Collateral equals to the amount of the desired

trading limit

Precondition for trading

SPOT:

Turnover margin based on historical exposures

Min. 10 000 EUR, or equivalent GBP

NET BUYER position margin increases

NET SELLER position margin decreases

FUTURES:

Initial margin based on the open positions

Delivery margin based on the delivery positions

MARGIN REQUIREMENTS ARE NETTED, THE

TOTAL NET AMOUNT IS TO BE PAID

Basic Financial Collateral

50 000 EUR / 40 000 GBP / market

FIXED DEPOSIT, INDEPENDENT FROM TRADING!

Comparison of NCM models Collateral structure

AT

START

STANDARD


DIRECT


TRADING

RELATED

87

Admission process

CLIENT

*Client also applies for admission to the Exchanges at the same time

KELER sends admission

package to the Client

Client applies for

admission to ECC*

Submission of required

documents to KELER

Collection of documents,

notary, etc.

Signing NCM02

Verification of documents,

Risk assessment, Legal opinion

Account opening

Signing NCM02 Signing NCM02

Verification of

documents

Approval of

application

1. 1.

2.

3.

5.

Client provides collaterals to

KELER & starts trading

4.

5. 5.

TIME REQUIRED:

~2-3 WEEKS,

AFTER SUBMITTED

DOCUMENTS

COMPLY WITH ALL

REQUIREMENTS

88

Admission requirements

Excerpt from Trade Registry1

Signature Specimens1

Energy authority licence1

Document certifying tax No 1

Know Your Customer

questionnaire

Beneficial Owner Declaration

Notarized ID or passport

copies1

Service Agreement2

Non-Clearing

Membership Agreement

Trilateral NCM with ECC

and KELER CCP

KID3 contract

Equity capital of min.

€250,000 or equivalent

Audited balance sheet and

P&L statement

Trade Reporting

service contract

(EMIR / REMIT)

Contract on LEI code

application

OBLIG

ATO

RY

OPTIO

NAL

DOCUMENTS AND FORMS CONTRACTS AND AGREEMENTS FINANCIALS AND

RELATED DOCUMENTS

1 Original or notarized copy – to be checked if apostille is needed 2 Except of Serbian entities 3 KELER Interface Device – online communication channel for customers

89

ETD*

mainly EMIR

reporting

Other ETD* & OTC

EMIR and REMIT

reporting

Value added services Trade reporting & LEI code

REPORTING SCHEME

Trade data

Trade data

Trade / order data

COMPETENT

AUTHORITY

NATIONAL DEPOSITORY / BANK

CLEARING HOUSE

*Exchange Traded Derivatives; REGIS-TR is the Trade Repositary selected by KELER for EMIR reporting

1.

GENERAL BENEFITS

One-stop-shop solution

reporting both for EMIR and REMIT

Easy access

web-based Trade Reporting System

3rd party reporting

all parties can monitor the data reported

Automated reporting (under EMIR)

trades cleared through KELER

Test system

with free of charge access

Legal Entity

Identifier (LEI) code issuing and

renewal

Clients can apply for LEI codes at

KELER

+

REMIT • Standard

• Non-standard

• Eletricity Transportation

• Gas Transportation

ALL TYPES OF REPORTS

2.

3.

4.

5.

EMIR

ETD*

+ OTC trades

Table 1

Table 2

Table 3

Table 4

90

KELER organization and key areas

BANKING OPERATIONS STRATEGY &

CLIENT RELATIONS

RISK MANAGEMENT

& FINANCE IT

Settlement & Account

Mgmt.

Asset Services

Issuer Services

Business Process Support Network Management

Product Management

Marketing

Maintenance&Procurement

IT Operation

Application Development

Service Desk Finance & Accounting

Daily settlement

operation:

transfers, FX, e-

channels

Clearing reports,

collaterals, trading

limits etc.

Technical support

(e.g. KID*)

*KELER Interface Device, E-channel for placing daily instructions and downloading statements, reports

New service offering,

conditions, admission

process, contractual

administration, etc.

Contacts

available

for issues

related to

Clearing Operations

Treasury

Client Service Management

Sales and Client Relations Risk Management

Contacts – responsible experts

ATTILA TAKÁCS

Head of Sales and Client Relations

takacs.attila @keler.hu

+ 36 1 483 6274

ZSÓFIA KORSÓS

Sales and Client Relations Manager

korsos.zsofia @keler.hu

+ 36 1 483 6264

ARTEMIS MANOUSSOS

Sales and Client Relations Manager

artemis.manoussos @keler.hu

+ 36 1 483 6180

KRISZTIÁN SOMOSI

Clearing Specialist

somosi.krisztian @kelerkszf.hu

+36 1 483 6188

SÁNDOR SZALAI

Director of Strategy and Client Relations

szalai.sandor @keler.hu

+ 36 1 483 6187

92

KELER CCP – The right choice For a long term cooperation with benefits

KELER Group’s experience of 23 years in clearing and settlement and

7 years in energy markets clearing offers solid basis for cooperation

Strenghts of KELER as an

energy clearing service provider

Flexibility and

tailor made services

Benefits

for new NCMs

Full range of services related to

power clearing

Special know-how and expertise to

service small, medium and large

power traders

Committment to further service

development

• Fast and personally supported admission process

• Tailor made collateral structures (cash and bank guarantee)

• Precise risk profiling, client assessment based trading limits

Proactive liquidity alerts

No minimum commission at settlement

banking services

Transparent fee structure

Direct operational line to the customer

service and client relationship desks

Clearing and settlement services in

Pound Sterling

93

Cut-off times and fee schedule of

KELER’s standard Non-clearing member model

Cut-off times

Settlement of purchase price and variation margin (EUR, GBP)

Settlement of ECC fees

Settlement of KELER Group fees

Information about the collateral amount defined for open positions

Deadline for providing collateral

Trading information is available on ECC’s website

Prior information about the purchase price on Settlement Day (auctions)

Prior information about the open positions’ variation margin & purchase price of trades in physical delivery cycle

Recording and reporting daily trades to Non-Clearing Members

TRANSACTION

SETTLEMENT

DEFINITION AND FULFILLMENT OF

COLLATERAL REQUIREMENTS

SETTLEMENT

REPORTS

SPOT MARKET

FUTURES MARKET

T+1 day 10:00

Due on the 10th business day (invoice sent to NCMs by ECC)

First business day following the end of the subject month

T+1 day 8:00

T+1 day 10:00

T day 12:30 (auction)

T day 14:00

T+1 day 8:00

T+1 day 18:00

T+1 day 10:00

T+1 day 8:00

T+1 day 10:00

T+1 day 8:00

N/A

T+1 day 8:00

T+1 day 8:00

95

Fee schedule

AMOUNT IN HUF

~AMOUNT IN EUR ITEM BASIS FEE TYPE

200,000

4.20 3.20 2.40

2.10 1.60 1.20

4.20 3.20 2.40

6.30 4.80 4.20

4,500

645 €

0.0135 € 0.0103 € 0.0077 €

0.0068 € 0.0052 € 0.0039 €

0.0135 € 0.0103 € 0.0077 €

0.0203 € 0.0155 € 0.0135 €

14.5161 €

Non-Clearing Membership fee

Day-Ahead Market clearing fee Below 0.5 TWh per year Between 0.5 and 1 TWh Above 1 TWh

Futures Market clearing fee Below 0.5 TWh per year Between 0.5 and 1 TWh Above 1 TWh

Physical delivery of futures transactions Below 0.5 TWh per year Between 0.5 and 1 TWh Above 1 TWh

Day-Ahead Market clearing on SEEPEX Below 0.5 TWh per year Between 0.5 and 1 TWh Above 1 TWh

French Capacity Guarantees on EPEX Spot

HUF/MWh HUF/MWh HUF/MWh




HUF/MWh

TURNOVER FEES

ON ECC MARKETS

Electricity EPEX Spot, EEX, HUPX, PXE, APX, SEEPEX

MEMBERSHIP FEE

Fees are quoted in HUF and will be invoiced in EUR at the mid-rate announced by the Cental Bank of Hungary for the issue date of the invoice. The above fees were calculated based on an exchange rate of EUR/HUF 310.

HUF/month/all spot markets

HUF/month/all futures markets

96

Fee schedule

AMOUNT IN HUF


4.20

3.20

2.40

1.05

0.80

0.60

4.20

3.20

2.40

0.0135 €

0.0103 €

0.0077 €

0.0034 €

0.0026 €

0.0019 €

0.0135 €

0.0103 €

0.0077 €

Turnover fee on spot markets

Below 0.5 TWh per year

Between 0.5 and 1 TWh

Above 1 TWh

Turnover fee on futures markets



Above 1 TWh

Future contract physical settlement



Above 1 TWh

HUF/MWh

HUF/MWh

HUF/MWh

HUF/MWh

HUF/MWh

HUF/MWh

HUF/MWh

HUF/MWh

HUF/MWh

TURNOVER FEES

ON ECC MARKETS

Gas EEX,

POWERNEXT

97

Fee schedule

AMOUNT IN HUF


TURNOVER FEES

ON ECC MARKETS

CO2 EEX

1 Fees are charged by KELER CCP in the energy market for both sale and purchase trades 2 Fees are charged by KELER CCP only on the buying side of the energy market trades

TURNOVER FEES ON ECC MARKETS

COAL EEX

0.42

0.42

0.21

0.42

0.42

0.42

0.66

0.66

0.0014 €

0.0014 €

0.0007 €

0.0014 €

0.0014 €

0.0014 €

0.0021 €

0.0021 €

Spot trading of emission units –

Secondary Market1

Spot trading of emission units – Auctions

(buyers only)2

Spot trading of emission units – Auctions

on Transitional Common Auction

Platform

Futures trades – Secondary Market1

Futures trades – Auctions (buyers only)2

Options

Futures trades1

Financial settlement of futures

contracts1

HUF/tCO2

HUF/tCO2

HUF/tCO2

HUF/tCO2

HUF/tCO2

HUF/tCO2

HUF/tons

HUF/tons

98

Fee schedule

AMOUNT IN HUF


BANKING FEES

1 Charged for debit transactions 2 General membership enables the client to report their own trades and additionally the other side of the trade on behalf of the trading partner 3 Individual membership enables clients to report solely their own trades through KELER

LEI

10,000

600

15,000

80,000

40,000

6

10

80,000

40,000

-

-

32 €

2 €

48 €

258 €

129 €

0.02 €

0.03 €

258 €

129 €

100 €

100 €

Cash account maintenance - EUR

Financial settlement fee of energy market1

KID fee for users

General membership fee

Individual membership fee

Reporting fee

Maintenance fee

General membership fee2

Individual membership fee3

LEI application fee

Maintenance fee

HUF/month

HUF/transaction

HUF /month

HUF/month

HUF/month

HUF/UTI

HUF/mth/open trades

HUF/month

HUF/month

EUR/LEI/pieces

EUR/LEI/year

TRADE REPORING

EMIR

TRADE REPORING

REMIT

99

Thank you for your attention

I-SEM/NEMO Entity Model

100

• Two documents available – I-SEM Balancing – NEMO Entity Models – Simple Examples

– I-SEM Balancing – NEMO Entity Models – Detailed Examples

• Provides examples of potential setups for Balancing and DAM/IDM

• Latest version detailed includes confirmation and elaboration of “Alternative 3”

– 3rd Party trading on behalf of multiple Parties and Units in the DAM/IDM

http://www.sem-o.com/ISEM/General/I-SEM Entity Model and the NEMO Entity Model Examples.pdf

http://www.sem-o.com/ISEM/General/I-SEM Balancing – NEMO Entity Models – Simple Examples.pdf











http://www.sem-o.com/ISEM/General/I-SEM Balancing – NEMO Entity Models – Detailed Examples.pdf











Registration Timeframes

101

Pre-Validation

• Talk to Banks, ECC, SEMOpx • All here today

• Review presentations from this meeting

• Available from SEMO website (I-SEM section)

• Review latest I-SEM Balancing/NEMO Entity Model Examples • I-SEM Balancing – NEMO Entity Models – Simple Examples • I-SEM Balancing – NEMO Entity Models – Detailed Examples

• Review latest Transitional Registration Plan

• Mostly updates to Capacity Timeline

• Submit drafts of ECC documentation for pre-validation

• Next NEMO BLG 9th March 2017

• Dublin – EirGrid Office

102

Next Steps























http://www.sem-o.com/ISEM/General/Transitional Registration Plan.pdf

103

Questions?

Appendices

104

Appendices

105

Transitional Registration Plan

106

Party Trades Itself in DAM/IDM

107

3rd Party Trades for Party in DAM/IDM

108

3rd Party Trades for Multiple Parties in DAM/IDM

109

Intermediary Trades for Owner in DAM/IDM

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