The default of a Clearing Member is declared if one of the following scenarios occurs in the future:

  • Insufficient coverage on the Clearing Member’s Cash Settlement Account in order to meet payment obligations
  • Failure to cover the Final Margin Call after due time
  • Failure to maintain the required collateral components in their particular proportions
  • Failure to replenish realised collateral
  • Failure to provide the required default fund contribution in due time
  • Failure to meet the obligations pursuant to the General Terms and Conditions for the Electricity Spot Market

Realization of collateral

In the event of a default on payment, the clearing member's collateral will be realised in the following order in the future:

  1. EUR - Cash Collateral and all credits to the cash settlement account
  2. Bank Guarantees
  3. Security Collateral
  4. Default Fund Contribution of the Clearing Member in default

The clearing member is obliged to replenish realised collateral immediately.

Open payment obligations are covered by using resources according to the default waterfall (the details can be found in the document Default Waterfall).

Further information on administration in the event of a default can be found in the document Procedures in the Event of Member Default Electricity Spot Market.