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Become A Member Clearing




Day-ahead market on SEEPEX is operated by EPEX SPOT using its existing trading system, which is also used in other market areas. Clearing is performed by ECC AG (European Commodity Clearing AG) using its infrastructure (technical, legal and regulatory) to provide clearing services and ensure the financial security of transactions concluded on the SEEPEX market. SEEPEX has thus achieved that its work is based on the existing technical infrastructure, both operational and clearing, in accordance with the best European practice in this field.

One of the key featurs of good and safe functioning of the organized market is resolvement of the issue of clearing. The clearing (financial settlement) service is performed after trading on the organized market and serves to settle transactions between participants. It covers a range of operations, in particular the management of financial positions over the duration of the contract, the management of collateral (payment security instruments) to manage business risk and the management of the financial settlement process.

Clearing can be bilateral, where each party is exposed to the risk of the other party, or through the introduction of the so-called central counterparty as is the case at SEEPEX, thus reducing business risk to minimum. Payment is made on the day of the transaction, except on weekends when payment is made on Tuesdays for the previous 3 days.

SEEPEX performs clearing through ECC AG, which is a renowned clearing house in Europe and represents the so-called the Central Counter Party (CCP) located in the contractual chain between the parties to the transaction. The CCP guarantees the realization of the transaction by legally settling between the buyer and the seller. As a result, CCP is present in every transaction, becoming a buyer for all sellers, and at the same time a seller for all buyers. The CCP is obliged to execute the transaction in full, even in the event of default by either party. This model transfers all risk from the regulated market to the CCP. Looking back at this, ECC AG has practically a dual role:

- As a clearing house, it takes care of financial settlement between participants in the organized market;

- As a CCP, it is responsible for the physical delivery of electricity in accordance with the concluded transactions on the organized market.

SEEPEX applies the standard clearing model as other markets covered by EPEX SPOT and ECC AG. The model of clearing  is shown in following figure:

For foreign participants (left half of the picture), who have a license for wholesale supply, the standard model is fully applied. Within this business chain, the following entities have been identified: ECC AG (as CCP - operates through its wholly owned subsidiary EEC Lux), Clearing Member (CM) and Organized Market Participant (Participant). The Participant has the right to trade on SEEPEX after the completion of the admission procedure, ie after signing the triple ECC-CM-Participant agreement, the Participant-SEEPEX agreement and the settings in the Electronic Trade Systemm (ETS). According to the standard clearing conditions, payment is not made directly between the ECC and the Participant, but through the Clearing Member. The Clearing Member is a participant in the clearing procedure who has a Clearing License and is registered with the ECC. Clearing Members provide a clearing and settlement service to SEEPEX participants (each CM is responsible for its SEEPEX members), while Cleaning Memebers are accountable to ECC AG. ECC AG practically works with CMs, and CMs works with Participants. For this purpose, a tripartite agreement is signed between the ECC-CM-Participant. Foreign Participants participating in SEEPEX have an advantage from the start because they use existing accounts with their Clearing Members and practically only one more market area (Serbia) is added where they trade. They do not have additional costs in this matter and practically continue to work according to the already established practice.

In the case of local companies (right part of the figure) active in the SEEPEX market, another entity is involved in the business chain - the Local Bank acting as the local Settlement Agent. This approach is applied bearing in mind that the Serbian currently applicable financial regulations do not provide the possibility for local / Serbian companies to open non-resident bank accounts abroad for this purpose. The local Settlement Agent in this case is practically the link between the Market Participant and the selected Clearing Member.

Taking into account the fact that it has assumed the entire business risk, the ECC works according to its own rules (and according to EU regulations) and itself assesses the level and value of risk for each individual member.

More information about ECC clearing can be found on following link:

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