The clearing members are obliged to provide CCPA with collateral in order to cover their margin requirements as well as their contributions to the default fund.

Collateral Policy

CCPA will define a Collateral Policy for the electricity spot market which specifies the different assets admitted as collateral, requirements on the issuers, procedures for collateral valuation as well as application of conservative haircuts.

In addition, strategies for avoiding liquidity, concentration as well as wrong-way-risk are explained.

Collateral to cover the Margin Requirements

For the coverage of margin requirements for electricity spot market transactions, CCPA will accept in the future

  • cash collateral
  • bank guarantees and
  • securities.

These must fulfil certain predefined criteria. The Details can be found in the Collateral Policy Electricity Spot Market.

Collateral for the Default Fund Contribution

Only cash collateral in EUR is permitted for the contribution to the default fund. The amount may optionally be transferred to a special default fund account of CCPA or pledged to a collateral account with OeKB AG as collateral custodian.