To limit its credit exposures arising from clearing of electricity spot market products, CCPA will maintain a pre-funded Default Fund to cover losses that exceed the losses covered by the margin requirements in case of a Clearing Member’s default, including the opening of an insolvency procedure.

CCPA maintains a Default Fund for all electricity spot market products held separately from the Default Fund for the clearing of financial instruments. The Default Fund shall at least enable CCPA to withstand, under extreme but plausible market conditions, the simultaneous default of the three Clearing Members to which it has the largest exposure.

The Default Fund contribution of a given Clearing Member is calculated based on a minimum amount and a dynamic component:

The minimum contribution to the Default Fund amounts to 

  • EUR 10.000

per Clearing Member on Electricity Spot Market.

The dynamic contribution component of Clearing Members is recalculated at least on a quarterly basis. Subsequently, CCPA compares the dynamic contribution component with the minimum contribution and calculates the total contribution required from each individual Clearing Member.

All details about the calculation can be found in the document Default Fund Calculation Electricity Spot Market.