Clearing is performed fully electronically through the state-of-the-art real-time clearing system of CCP.A. All trades within the same ISIN, account category (agent or principal) and trading day are netted. Thus, only net balances are settled. This process minimizes the number of settlement transactions as well as the risk exposure. Furthermore, it ensures efficient clearing up to international standards.
The clearing system offers a flexible account structure to the Clearing Members, thus enabling them to reach different granularity in the management of their position, margining, collateral and settlement accounts.
The clearing and risk management information is made available to the Clearing Members in different formats in near-real-time:
ISO Reporting (15022):
Exchange transactions in CCP-eligible securities must be fulfilled on the second clearing day after the conclusion of the trade (settlement day is t+2).
In the event of default of delivery, the clearing agency proceeds according to the following procedure:
- Separation procedure
- Covering procedure
- Cash settlement procedure
For the duration of the default in delivery the following payments from the amount outstanding are due for the Clearing Member being in default:
- As per § 35 (8) and § 55 (1) of the CCP.A General Terms and Conditions of Business penalty interest are calculated.
- As per § 55 (2) of the CCP.A General Terms and Conditions of Business a statutory interest on arrears pursuant to § 456 of the Austrian Commercial Code has to be paid to the Clearing Members affected.
During the separation procedure, a Clearing Member who is in default of delivery can arrange for the retroactive covering of the shortfalls or instruct the Clearing House by written order to obtain cover for the shortfalls. The buy-in order should be made as early as possible in written form, per fax or per email.